Glossary
What is DP Charges? Meaning, Example & Why It Matters
Fees charged by the depository and your depository participant when securities are debited from your demat account.
DP charges are fees levied when shares leave your demat account, which in practice means when you sell holdings delivered to you. They are made up of a depository fee (from NSDL or CDSL) and your depository participant's own fee. They are usually charged per company (scrip) per day, not per share, regardless of how many shares you sell.
Why DP Charges matters to you
Because DP charges are a flat amount per scrip, they hurt most on small sales. Selling a few hundred rupees worth of a stock can attract the same DP charge as selling lakhs of rupees worth. Intraday trades and F&O positions generally do not attract DP charges because no shares move out of your demat account.
DP charges vary between brokers and are often left out of headline brokerage comparisons. A broker with zero delivery brokerage might still charge a higher DP fee, so a long-term investor who sells frequently in small lots could end up paying more than expected. GST is added on top.
Practical tip: if you plan to sell a stock, try to sell it in one go on a single day rather than in small pieces across many days. That way you pay the DP charge once for that scrip instead of several times.
Example: Illustrative only: if your DP charge is around ₹15 per scrip per day and you sell three different stocks on the same day, you pay roughly ₹45 plus GST. Selling one stock in three parts on three different days would also cost about ₹45.
See it in rupees: every charge and tax on a real trade, at every broker. Open the brokerage calculator
Related terms
- GlossaryDemat Account
An electronic account that holds your shares, ETFs, bonds and other securities in dematerialised form.
- GlossaryDelivery Trading
Buying shares and holding them in your demat account beyond the trading day, for days, months or years.
- GlossaryAMC (Annual Maintenance Charge)
A yearly fee your depository participant charges for maintaining your demat account.
- GlossaryContract Note
A legal document your broker sends after each trading day listing every trade, its price and all charges.
Frequently asked questions
Are DP charges applied when I buy shares?
Typically no. DP charges usually apply when shares are debited from your demat account, which happens when you sell or transfer them.
Do intraday trades attract DP charges?
Generally no, because intraday positions are squared off the same day and shares are not debited from your demat account.
Why are DP charges not shown on my contract note?
Many brokers bill DP charges separately in your ledger rather than on the contract note. Check your ledger statement for these debits.