Depository Participant (DP) charges are levied by the Central Depository Services (India) Limited (CDSL) when a trader sells a share from their DEMAT account. DP charges work in the same way as brokerage charges. The CDSL and the depository participant levy a fee of Rs 13.5 + 18% GST per day for every stock sold. Once you place a sell order, the system automatically removes the stock from the DEMAT account. The DP charges when you buy a stock are Rs 0.

How do DP charges work?

Say, if you place an order to sell 50 stocks of A in the morning and another 50 stocks of the same stock listing in the afternoon, the DP will equate to Rs 13.5 + 18% GST. However, if you order to sell 50 stocks of A in the morning and 50 stocks of B in the afternoon, the DP will equate to Rs 13.5 + Rs 13.5 + 18% GST since multiple scrips are being sold.

Important things to know about DP charges

  1. DP charges are placed directly on the contract and not on the ledger. 
  2. DP charges are levied once per scrip despite multiple stocks being sold during the same transaction. 
  3. From May 3, 2019, the government stopped DP charges for the redemption of mutual funds. 
  4. For Buy Today Sell Tomorrow (BTST) equity products, the DP charges levied will be similar to normal delivery transactions.