What are DP charges (Depository Participant charges)?

DP charges are fees charged when shares are debited from your Demat account during a sell transaction. These charges are applied by the depository (CDSL/NSDL) and your broker.

When you sell shares from your Demat account, you have to pay Depository Participant (DP) charges. In India, these charges are set by Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL). You only pay DP charges when shares are debited from your account, such as in delivery trades or BTST (Buy Today, Sell Tomorrow).

Understanding how DP charges work helps you accurately calculate your trading costs and avoid unexpected deductions.

How do DP charges work?

Total DP Charges = Broker DP Fee + Depository Fee + 18% GST

When you place a sell order through your broker, the following procedure is followed:

• Shares are debited from your Demat account.
• The depository (CDSL/NSDL) charges a fee.
• Your broker adds their DP charges.
• GST (18%) is applied to the total.

These charges are automatically deducted and shown in your contract note, not separately in their ledger.

Examples of DP Charges

Let’s assume your broker charges ₹15 and is registered with CDSL.

Case 1: Same Stock Sold Multiple Times (Same Day)

• Sell 50 shares of ABCD in the morning
• Sell 50 shares again in the afternoon
  → DP charges applied only once
   Total = ₹15 (broker) + ₹5.50 (CDSL) + 18% GST

Case 2: Different Stocks Sold

• Sell 50 shares of ABCD
• Sell 50 shares of EFGH

 DP charges applied separately for each stock Total = ₹30 (broker) + ₹11 (CDSL) + 18% GST

If your broker uses NSDL, then: Total = ₹30 (broker) + ₹10 (NSDL) + 18% GST

Important things to know about DP charges

Here are some important things to know about DP charges:

• DP charges apply only when shares are sold.
• Charged once per stock (scrip) per day.
• In most cases, It's Not charged on intraday trades. 
• Visible in the contract note during settlement.
• Since May 2019, it no longer applies to mutual fund redemptions. 

Key Takeaways

• DP charges are fees deducted when you sell shares from your Demat account
• They include both depository (CDSL/NSDL) and broker charges
• Charged once per stock per day
• GST (18%) is applied to the total
• Understanding them helps you manage trading costs effectively