HDFC deducting excessive charges

[Siddhartha SankarJana]

In May 2014 ,I have sold 15 shares of Indusind Bank@556. After deducting Brokerage Charge & other taxes ( In total Rs.57/-) , my account is credited by Rs.8397/-.
Now to my surprise , I saw HDFC Bank has deducted another Rs.25/- as depository charges. When I contacted them they wrote back that "When you sell securities through your broker (HDFC Securities Ltd.) the securities will get transferred from your Demat account to your broker's account. The transfer-out from your Demat account constitutes a debit transaction for which transaction charges are levied by the DP (HDFC Bank Ltd.) in accordance with the tariff agreed between you and the DP."

Can they do that? Can they deduct extra money other than brokerage charges ?

 

[sabharwal_RK]

Yes its perfectly justified, everyone pays you me or anyone on this forum or the entire country, get out of this free bees mindset buddy nothing is free in this world...

 

[mastermind007]

In May 2014 ,I have sold 15 shares of Indusind Bank@556. After deducting Brokerage Charge & other taxes ( In total Rs.57/-) , my account is credited by Rs.8397/-.
Now to my surprise , I saw HDFC Bank has deducted another Rs.25/- as depository charges. When I contacted them they wrote back that "When you sell securities through your broker (HDFC Securities Ltd.) the securities will get transferred from your Demat account to your broker's account. The transfer-out from your Demat account constitutes a debit transaction for which transaction charges are levied by the DP (HDFC Bank Ltd.) in accordance with the tariff agreed between you and the DP."

Can they do that? Can they deduct extra money other than brokerage charges ?

It is not 100% ethical but quite a few companies do this. What I would recommend you do is read thru the contract you signed carefully (scan for fees of 25). My broker did that few times and I told him to show me the page of contract on which I had signed (agreed) to that fee. The point of argument was that they cannot charge any fees they are not willing to show on the contract note. Two weeks later, they told me they've upgraded me to a better plan and I do not have to pay that anymore.

Another broker needlessly rounds off the amount. if my contract value is 2452.43, they will deduct 2453 from the cash account and pocket 57 paisa. Small change for client. healthy extra income for broker.


--- Penny saved is penny earned ...

IMHO, Sharekhan does not do this kind of nonsense. They do have minimum delivery cost. If you sell from DPSR and your brokerage generated is less than 16 rs, they will add the difference back. If your brokerage is higher than or equal to 16, no further cost is added. This is written clearly in document that I signed. Whatever they charge shows up on the contract note.

 

[mastermind007]

Yes its perfectly justified, everyone pays you me or anyone on this forum or the entire country, get out of this free bees mindset buddy nothing is free in this world...

Just because everyone does it can never be justification for anything.

Siddhartha SankarJana was not looking for a freebie. Charges he mentions are not on contract note and hence ethically and legally wrong.

Besides, all of us pay AMC (annual maintenance charge) for a DP account (or pay stiff fee if we get shares re-matted). Effectively, it is rent for having a DP account and if we cannot make certain amount of deposits and withdrawals for free, AMC kya achaar banane ke liye lete hai?

I am reasonably certain that if he makes right amount of noise thru the right channel, his broker will reverse (and waive) charges off him while they continue milching others

 

[lemondew]

It didnt happen to me. I used Hdfc sec in the past. But Their brokerage is very high, margins highest, services poor (customercare takes 6-7 mins of hold to answer your phone), trading software very poor. I changed to zerodha now.

The reason I chose hdfc sec was because I had a hdfc bank account and imagined hdfc would be on par with the best brokers. I would call myself lazy and foolish for doing that.

In May 2014 ,I have sold 15 shares of Indusind Bank@556. After deducting Brokerage Charge & other taxes ( In total Rs.57/-) , my account is credited by Rs.8397/-.
Now to my surprise , I saw HDFC Bank has deducted another Rs.25/- as depository charges. When I contacted them they wrote back that "When you sell securities through your broker (HDFC Securities Ltd.) the securities will get transferred from your Demat account to your broker's account. The transfer-out from your Demat account constitutes a debit transaction for which transaction charges are levied by the DP (HDFC Bank Ltd.) in accordance with the tariff agreed between you and the DP."

Can they do that? Can they deduct extra money other than brokerage charges ?

 

[Oscar12]

My frnd..demat transaction fees is charged by every demat dept.
further you can connect to hdfcsecurities help desk via quick chat session available on their website for any assistance.

"Positive thoughts leads to positive Results"

 

[lemondew]

Open account with another broker. Transfer securities. Wish them goodbye and good luck.

My frnd..demat transaction fees is charged by every demat dept.
further you can connect to hdfcsecurities help desk via quick chat session available on their website for any assistance.

"Positive thoughts leads to positive Results"