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