What are DP charges (Depository Participant charges)?

Depository Participant (DP) charges are levied by the one of the two depository participants in India which is Central Depository Services India Limited which is well known as CDSL and another one is Protean eGov Technologies Ltd. Which is replaced by the name National Securities Depository Limited (NSDL), They levy charges only when a participant sells their existing holdings from their DEMAT account and trading account as-well (BTST). CDSL charges ₹5.50 for every transaction while NSDL is charging only  ₹5.00 for every stock transaction done and the broker also levies DP charges along with the depository. The broker DP charges are differ with each and every broker.

How do DP charges work?

Once the participant placed an order to sell their holdings with their registered broker the broking system automatically deducted the above-mentioned DP charges along with 18% of GST. For example consider your broker is registered with CDSL and they charges ₹15.00 DP charges. 

Examples of DP Charges

CASE 1: if you place an order to sell 50 stocks of ABCD Ltd in the morning and another 50 stocks of the same stock listing in the afternoon, the DP will equate to Rs 15.00 + 5.50 + 18% GST. 

CASE 2: if you order to sell 50 stocks of ABCD in the morning and 50 stocks of EFGH in the afternoon, the DP will equate to Rs 30.00 + 11.00 + 18% GST since multiple scrips are being sold, for the same if the broker is registered with NSDL the get’s charged ₹15.00 + ₹5.00 + 18% GST 

Important things to know about DP charges

1. DP charges deducted can be seen directly on the contract note at the time of settlement and not from the ledger. 
2. DP charges are levied once per scrip despite multiple stocks being sold during the same trading day.
3. Since May 3, 2019, the government have taken the decision to stop the deduction of DP charges for redemption of mutual funds.