What is DP charges?

What is a Depository Participant (DP) Charges in Stock Market?

Learn about the Depository Participant (DP) charges and find out the meaning of DP charges and how these are deducted from your brokerage account.

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As a merchant, you may have noticed that your broker charges a fee when you sell your shares. These fees are known as Depository Participant (DP) fees, and they are not specified in the contract.

One of the more perplexing aspects of investing in the online stock market is the DP charge, so it's critical to understand the subject thoroughly. First and most important, DP charges are purchase payments made by investors for purchases made after an investment date.

Deposit charges are typically high because they are the depositor's sole source of income, and the benefits to newer lending representatives are negligible.

First, what are dp charges or why do they levy DP Fees in this article?

DP Charges Meaning

Were you knowledgeable that all sell transactions involving your Demat Account will be subject to a depository participating member charge? These fees are not reflected in contract notes and exist solely to generate revenue for depositories and participants.

DP charges appear to be a corresponding flat fee based on the variety of data points analysed. They are calculated per share sold rather than on a volume basis. This means that DP charges will remain at 1 or 100 shares per share.

The depositories noted above can be costly for brokers because they must deal with various fees. This is particularly important because the broker will pay a different brokerage fee, significantly impacting your costs.

When researching different brokers to work with, keep the depository participant's fee and brokerage fee in mind and how these two fees will affect your operations if you are included in one of them.

What are DP Charges in the Stock Market?

All sales of shares in your Demat Account are subject to charges levied by the DP. DP Charges are the same regardless of the quantity sold. If your stockbroker charges INR 10 for DP, you will pay INR 10 on 100 shares and INR 10 on 1000 shares. These charges are not visible in the contract notes.

As previously stated, the depositories and the depository participant levy the stock DP charges. The National Securities Depository Limited (NSDL) serves as the depository for stocks listed on the National Stock Exchange (NSE) Nifty. In contrast, the Central Depository Securities Limited (CDSL) serves as the depository for stocks listed on the Bombay Stock Exchange (BSE). Your stockbroker or agent is a go-between for NSDL or CDSL and you. The four actual charges for a Demat Account transaction that you should be aware of are:


  • Fee for Opening an Account 

  • Fee for Annual Maintenance

  • Custodian Charge

  • Fee for Transaction


DP fees are generally fixed, unlike other charges such as brokerage fees, stamp duty, etc. So it makes no difference whether you sell one share or a thousand shares. The price remains unchanged. Furthermore, the DP charge cannot be found on the contract note sent from the broker because it is added to the ledger. Investors frequently believe that BTST (Buy Today Sell Tomorrow) trades are excluded from DP charges. That, however, is not the case.

Assume you purchased 100 shares of XYZ company on Monday and sold them on Tuesday. The share(s) are reimbursed after T+2 days when you place a buy order. If you place an order to sell, the share(s) will be deducted from your consideration in T+2 days.

Because shares are credited or debited after two days, the shares you bought on Monday will be transmitted to your Demat account on Wednesday, and the share capital you sold on Tuesday will be removed from your account on Thursday. You must pay the DP charges because the shares remain in your Demat account for one day.

What are DP charges used for?

To provide a Demat account to a client, each broker must become a depository participant.

These depository participants must pay a membership fee to CDSL or NDSL and various other fixed costs and advanced prepaid payment charges.

The brokers pass these costs on to their customers for an additional fee to cover these costs.

Who is in charge of levying and collecting DP charges?

DP charges are levied in India by depository institutions such as NSDL and CDSL. When you sell a stock on the NSE, a portion of the DP charges is paid to NSDL. Similarly, if you trade an amount of inventory on the BSE, the CDSL receives a portion of the DP charges. Depository Participants, including 5Paisa, act as a go-between for NSDL/ CDSL and investors.

In addition to DP charges, an investor typically pays four types of costs and fees to DPs: Demat account opening fees, Annual Maintenance Charges (AMC), processing fees, and custodian fees. All eligible customers can open a free Demat and trading account with 5Paisa. You can open a free Demat and trading account in less than 5 minutes.

Depository Participants levy DP Charges for a variety of reasons.

A stockbroker must be a depository participant to provide Demat Account services to individuals. However, to become a depository participant, the stockbroker must pay membership fees and the sophisticated transaction charge to the depositor, specifically the NSDL and CDSL. The stockbroker will charge a Demat Account Opening Fee and an Annual Maintenance Charge (AMC) to cover these costs.

DP Charges by Depository

Aside from knowing the complete form of DP Charges and their significance, you should also be familiar with the two depositories and their roles. Here's a quick rundown of what they are:

National Securities Depository Limited (NSDL)

The NSDL is promoted as a depository by the NSE and the Unit Trust of India (UTI). NSDL employs Depository Participants, Clearing Corporate entities, Share Transfer Agents, and other entities to carry out various functions. NSDL's business partners are also known as Depository Participants.

Customers and trying to clear corporations to require DPs to be NSDL members to receive services. You can access the various NSDL services via DPs only. You must, however, open a depository account with the DP first.

As DP Charges, the NSDL levies INR 17.50 (INR 13 + 4.50) per sell transaction and per day.

Central Depository Services India Limited (CDSL)

National Securities Depository India Limited is a company that provides services to banks and other financial institutions (CDSL)

The BSE, along with other public sector banks, promote CDSL. The CDSL uses dPs to manage and record the balances in your account—the DPs act as go-betweens for you and the CDSL. Account statement provisions from DPs with information on your exchanges and securities held are accessible to you at regular intervals.

The CDSL charges INR 18.50 per sell payment per day (INR 13 + 5.50).

Visit the HDFC Bank website if you want to open a Trading Account or a Demat Account. HDFC Bank provides you with a 3-in-1 account.

How are DP Charges determined?

DP charges are essentially depository charges levied by brokers (which typically include cdsl/nsdl fees). When you trade delivery, you must pay your broker DP charges depending on the number of scrips sold instead of shares sold.

DP CHARGES = [Broker fees + depository fees (CDSL/NSDL)] + GST

Your dp charges are calculated in this manner.

In terms of dp charges, different brokers charge their clients differently. Let me assure you that the depository fee, which CDSL and NSDL charge, remains unchanged. The C tbutDL fees that wiry.

Here are the DP charges you'll have to pay with various brokers:

  1. Finvasia – Rs.3.5 + 5.5 = Rs.9 + GST/share

  2. 5paisa – Rs.7 + 5.5 = Rs.12.5 plus GST/scrip

  3. Zerodha – Rs.8 + 5.5 = Rs.13.5 + GST/share

  4. Wisdom Capital – Rs.10,5 + 4.5 = Rs15+gst/share

  5. Upstox – Rs.13 + 5.5 = Rs.18.5 plus GST/scrip

  6. Kotak Securities – Rs.27 + 4.5 = Rs.31.5 + GST/share


It is important to remember that each broker will have its own set of fees in addition to depository fees. If you are considering buying stocks, you should be aware of the different charges levied while trading.


What exactly are DP charges?

Any sell exchanges in your Demat Account will incur Depository Participant (DP) fees. These fees are in addition to the brokerage fees and are not included in contract notes. Depositories and their attendees profit from DP charges.

DP charges are a flat transaction fee that applies regardless of the number of shares sold. As a result, the charges are determined by the number of shares sold rather than the total loudness of shares traded. So, regardless of whether you sell one or 100 shares, the fees remain the same.

How are DP fees determined?

If you sell 50 shares of X in the early hours and 50 shares of Y in the afternoon, your total applicable DP charges will be Rs 13.5 + Rs 13.5 = Rs 27 + 18 per cent GST because you are selling multiple scrips. Please keep in mind that DP charges are directly posted to the ledger and do not seem to be on the contract note.

Is it necessary for me to pay DP fees?

No, you will not have to pay DP fees when trading intraday. However, when you start executing an intraday trade, you must pay the applicable brokerage. Only delivery trading is subject to DP charges.

What is the best way to avoid DP charges?

You can avoid them. Here are some strategies for avoiding DP charges:

  1. Trading intraday - Intraday trading is buying and selling stocks on the same trading day. The entire transaction is completed before the market closes. You do not have to pay DP charges for intraday trading because shares are not deposited into your Demat account. This type of trading aims to make quick profits rather than to invest.

  2. Trading BTST - BTST trades take advantage of short-term market volatility by selling stocks before placing them into a Demat account. Perhaps these shares were purchased previously and have not yet been supplied to a Demat account.

  3. Options and Futures - There is no DP charge when trading derivatives such as futures and options.

Do all brokerages levy DP fees?

Yes, all brokerages levy DP fees. DP fees are levied by the depository each time you sell assets from your Demat account. DP fees include both depository and depository attendee fees.