What Are DP Charges? Meaning, Example & How They Work
- 5th June 2025
- 8 min read
Introduction
Depository Participant (DP) charges are flat fees levied by depositories every time you sell shares from your Demat account. They are charged regardless of the size or value of the transaction and are deducted by your broker on behalf of the depository, either NSDL or CDSL.
Unlike brokerage, which varies with order size, DP charges remain fixed per scrip per day. Many investors only notice these charges when reviewing their contract notes, which is why understanding them upfront helps you plan trades and manage costs better.
This blog explains what DP charges are, who levies them, how they are calculated, and how they compare with brokerage charges.
What Are DP Charges in Demat Account?
DP charges are a mandatory fee which is levied on each sell transaction from your Demat account. These charges are different from brokerage fees and are not included in contract notes. You have to pay these fees for trading using a brokerage platform. When the DP releases the stock and it appears on the trading account to execute the sale transaction, an amount is deducted from your account.
These charges are fixed and are not the same as stamp duty, brokerage fees, and others. Hence, you must pay the same percentage of charges whether you sell 10 or 100 shares.
DP Charges Example
Suppose you sell 50 shares of Reliance Industries on Monday for ₹3,000 per share. Your total sell value is ₹1,50,000. If your DP charge is ₹15.93 plus GST per scrip per day, you will be charged the same ₹15.93 regardless of the sale value. If you sell shares of two different companies on the same day, say Reliance and TCS, you pay DP charges twice, once for each scrip. The charge is per company, per day, not per trade
Who Charges DP Charges?
Since you have the basic knowledge of what are stock DP charges, now let us understand who levies these charges. Depositories like the Central Depository Services (India) Limited (CDSL) and National Securities Depository Limited (NSDL) and their participants levy these charges as their source of revenue.
CDSL will collect DP charges if you sell shares on the Bombay Stock Exchange (BSE), and NSDL will collect the charges if you sell them on the National Stock Exchange (NSE). DPs or registered stockbrokers levy these charges because they act as the mediator between the depositories and investors.
Why Are DP Charges Levied?
DPs levy these charges from investors to run their operations. A DP needs to register with CDSL and NSDL to get a license for business operations before offering Demat account opening benefits to customers. They must pay a huge amount to the Securities and Exchange Board of India (SEBI), CDSL, and NSDL. These charges help the DPs recover from upfront money to get a license from the depositories.
For instance, a stockbroker has to pay application processing fees, SEBI fees, a refundable security deposit, connectivity charges, software maintenance charges, and training fees to become a DP. The DP charges collected from investors help DPs recover the upfront money to get the licence from SEBI, NSDL, and CDSL.
How Are DP Charges Levied?
DP charges are levied by your Depository Participant (the broker holding your Demat account) on behalf of the depository, either NSDL or CDSL. The final amount you pay includes the depository’s charge, the DP’s own fee, and 18% GST on top.
With effect from 1 October 2024, CDSL charges a flat fee of ₹3.50 per debit transaction. An additional discount of ₹0.25 per debit transaction applies for:
- Female Demat account holders (as the first holder)
- Mutual Fund ISINs
- Bond ISINs
On top of the CDSL charge, your DP adds its own fee, which varies by broker and account type. Below is an indicative range of charges across brokers in India:
| Charge Type | Indicative Amount |
| Demat Account Opening | Nominal fee or free, depending on broker |
| Annual Maintenance Charges (AMC) | ₹300 to ₹750 (full-service) / Up to ₹300 (discount brokers) |
| Transaction Charges (per trade) | ₹10 to ₹100 (flat fee) or 0.5% to 1% of transaction value |
| Dematerialisation Charges | ₹25 to ₹150 per certificate |
| Rematerialisation Charges | ₹10 for 100 certificates to ₹150 per certificate |
| Custodian / Safety Charges | ₹0.5 to ₹1 per ISIN per month |
| GST | 18% on all charges |
Actual charges differ between brokers and depend on the account type you choose. Many brokers also offer Basic Services Demat Accounts (BSDA), zero-AMC schemes, or first-year waivers to reduce costs for new investors.
Key Points About DP Charges
You have to pay a fixed amount of DP charges for each share sale transaction. Below are the important things that you need to know about DP charges:
- You only have to pay these charges for selling shares and not for buying.
- You have to pay the fixed charges once for selling shares of one stock, even at different times of day. However, if you sell shares from more than one stock, you have to pay it multiple times.
- These charges are non-negotiable and are not included in the brokerage fees.
- DP charges can vary from broker to broker.
DP Charges vs Brokerage Charges
Many new investors confuse DP charges with brokerage charges. Both are levied by your broker, but they serve different purposes and follow different structures. The table below highlights the key differences.
| Parameter | DP Charges | Brokerage Charges |
| What it covers | Fee for holding and transferring shares in your Demat account | Fee for executing buy or sell orders on the exchange |
| Charged by | Depository Participant on behalf of the depository (NSDL or CDSL) | Stockbroker for trade execution services |
| When levied | On sell transactions only | On both buy and sell transactions |
| Structure | Flat fee per scrip per day | Flat fee per trade or a percentage of transaction value |
| Visibility | Not included in the contract note, billed separately | Mentioned clearly in the contract note |
| Varies with order size | No, charge stays the same | Yes, in percentage-based models |
In short, brokerage rewards the broker for executing your trade, while DP charges cover the cost of holding and moving your shares within the depository system.
Conclusion
Understanding what is DP charges in share market is crucial to individuals who have just started their investment journey. Levying DP charges is important for stockbrokers to run their operations. The stockbrokers also transfer a significant portion of these charges to the depositories.
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FAQs on DP Charges
1. What is a Depository?
A depository is an authorised financial institution that holds the transfer of your securities in electronic form with the help of DPs.
2. Who are Depository Participants?
A depository participant or DP is an organisation that acts as an intermediary between the depositories, like the CDSL, and investors in India.
3. What is stock DP charges?
DP charges are a fixed amount that a DP levies from an investor to run their business. Different stockbrokers levy different DP charges on an investor.
4. Are DP charges refundable?
No, DP charges are not refundable once levied. They are deducted by your Depository Participant on behalf of the depository for processing a sell transaction from your Demat account. Even if you reverse or modify a trade later, the DP charge for the original debit transaction stays. Some brokers may waive these charges under specific promotional schemes, but standard refunds are not allowed.
5. Can DP charges be waived off?
DP charges cannot be waived on a per-transaction basis once levied. However, some brokers offer promotional schemes, zero-AMC accounts, or special plans that reduce or waive certain DP-related fees. Basic Services Demat Accounts (BSDA) also come with lower charges for investors holding securities below the SEBI-prescribed limit. Always check your broker’s tariff sheet for the latest applicable charges.
