DP Charges: What They Are & How They Work
Many investors notice a small deduction called DP charges when selling shares and often get confused about its purpose. Understanding DP charges meaning, why they are applied, who collects them, and when they are charged helps you manage trading costs better.
What Does “DP Charges” Mean in a Demat Account?
DP charges, also known as Depository Participant charges, are fees applied whenever you sell shares from your Demat account. If you’re wondering what are DP charges, it is a fixed fee collected by your broker (Depository Participant) on behalf of depositories like NSDL or CDSL. This charge is not linked to the trade value but is applied per transaction, regardless of the number of shares sold. DP charges cover the cost of debiting shares from your Demat account and transferring them securely to the buyer, ensuring smooth and reliable settlement of trades.
Who Levies DP Charges? (CDSL, NSDL & DPs)
DP charges have two components applied together whenever you sell shares from your Demat account:
- CDSL or NSDL: These are the two main depositories in India that manage and maintain all Demat accounts securely.
- DP or Broker: Your Depository Participant, like Findoc, is your stockbroker, responsible for facilitating transactions and collecting charges.
Both the depository and your broker charge a fee, which together form the DP charges you pay per transaction. If you’re planning to invest, you can easily open a Demat account online with a SEBI-registered DP like Findoc.
How Much Are DP Charges? Breakdown by Broker & Gender
Some brokers have fixed charges for everyone. Others offer slightly lower charges for female account holders. Here’s an example
| Account Holder Type | Broker Fee | CDSL Fee | Total (Before GST) | GST (18%) | Final Amount |
|---|---|---|---|---|---|
| Male | – | – | ₹14.00 | ₹2.52 | ₹16.52 |
| Female | – | – | ₹14.00 | ₹2.52 | ₹16.52 |
| Mutual Funds | ₹0 | ₹0 | ₹0 | ₹0 | ₹0 |
Male vs Female Account Holder Rates
| Gender of Account Holder | Per Stock DP Charge + GST |
|---|---|
| Male | ₹16.52 per stock/Script |
| Female | ₹16.52 per stock/Script |
When and How Are DP Charges Applied?
Per Stock, Per Day Rule
For example, the same stock is sold twice (Male account holder):
Two different stocks were sold (Female account holder):
Charges on BTST (Buy Today Sell Tomorrow) Trades
Why DP Charges Exist: Demat Costs & Legal Mandates
How DP Charges Appear in Statements (Not in Contract Note)
How to Reduce Your DP Charges (BSDA, Broker Offers)
Comparison: DP vs AMC vs Transaction Fees
| Charge Type | What It Means | When Applied |
|---|---|---|
| DP Charges | DP charge means a fee for selling shares from a demat account | On selling stocks (per day/stock) |
| AMC | Annual fee to keep the demat account active | Once a year |
| Transaction Fee | Broker’s charge for placing a buy/sell | On every trade |
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FAQs
DP charge for a male primary account holder is ₹13 + 18% GST, which equals ₹15.34 per stock per day, even if sold multiple times in a day.
Yes, DP charges are not applied when you sell mutual funds held in your demat account. With Findoc you can sell them without paying any DP fee.
DP charges do not show up in your contract note because they are not part of the broker’s trading charges. They are separate demat-related charges and appear later in your ledger or account statement.
No. Even in BTST trades (Buy Today, Sell Tomorrow), when you sell the shares, they leave your demat account. So, DP charges are still applied just like regular sell trades.
You can see DP charges in your broker’s ledger report or fund statement. Look under the “Debit” section or search for terms like CDSL charges or DP charges in your transaction history.