DP Charges

DP Charges – Everything you need to know

DP Charges

Did you know that you have been paying a fee apart from brokerage charges and it does not reflect in contract notes as well as brokerage? Yes, its true and that charge is known as DP charges.

In this post, you will learn everything you need to know about DP charges along with the amount charged by various brokers in the Indian Stock Market.

So let’s get started.


DP Charges


The full form of DP charges is Depository Participant (DP) charges.

A depository is an institution which holds securities with it, in which trading is done with shares, debentures, mutual funds, derivatives, F&O, and commodities. The mediators perform their actions in a variety of securities at Depository on behalf of their clients. These intermediaries are known as Depository Participants.

Essentially, There are only two depositories in India. One is the Central Depository Service (India) Limited (CDSL) and the other one is the National Securities Depository Limited (NSDL).

Each Depository Participant (DP) needs to be registered under either of these depositories before it commences its operation.

Now you might be thinking that who all can be depository participants.

So here is the list:

  • Public financial institutions,
  • foreign banks,
  • scheduled commercial banks operating in India with the approval of the RBI,
  • stock brokers like Zerodha etc
  • Custodians
  • State Financial Corporations
  • NBFCs
  • Registrar to an issue or share transfer agent complying with the requirements prescribed by SEBI can be registered as DP


Just like you avail banking services from the bank branch, depository services such as Dematerialisation, Rematerialisation etc can be availed through a DP.

You cannot directly go to a depository to open a demat account, it needs to be done through a depository participant. Depository Participants are agents of the depository through which it interacts with the investor and provides depository services.


What is DP charges?


Now that you have understood what is depository and depository participant, let us see what is DP charges?

Depository Participant (DP) charges are the charges levied by a stock broker which is a depository participant and the depository when you sell a stock. Simply because, it does not display as brokerage or contract note, it often goes unnoticed. The fees collected from a broker is an additional income above and beyond brokerage charges.


Example: Assume that you own some stock and you sell it through your stock broker with whom you have a demat account. Apart from brokerage charges, you will be levied DP charges of (₹4.5 for NSDL or ₹5.5 for CDSL) + Debit charges levied by the stock broker. DP charge is calculated in this way. These charges vary from broker to broker.


DP charges are a flat transaction fee levied on the sell side of delivery trades irrespective of the quantity you sold. So the fee levied is per scrip and not the number of shares sold. So the DP charge will be the same whether you sell 1 share of XYZ company or 1000 shares of the same company. ( This is regarding the fees charged by CDSL / NDSL, some brokers do levy debit charges based on the number of stocks you hold )


Why are DP charges charged?

As you learned earlier that to provide a demat account to clients each broker must become a depository participant.

All these depository participants need to pay a membership fee to CDSL or NDSL which goes in lakhs along with various other fixed costs and also advanced prepaid transaction charges.

As expected the brokers pass on these charges to their customers by adding an additional fee to recover these expenses.


How to avoid DP charges?

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This is a common question of many traders and investors. You cannot avoid DP charges in delivery trades however there are three ways by which you can avoid DP charges :

  • By closing your position intraday.
  • By taking BTST trade.
  • By trading in the futures segment.


DP charge of (₹4.5 for NSDL or ₹5.5 for CDSL) + Debit charges levied by the stockbroker

DP charges – ICICI

NDSL – Rs 4.5
ICICIDirect – Rs 0

So the total DP charge with ICICIDirect is Rs 4.5 per scrip


DP charges – Zerodha

CDSL – Rs 5.5
Zerodha – Rs 8

So the total DP charge with Zerodha is Rs 13.5 per scrip


DP charges – Kotak securities

NDSL – Rs 4.5
Kotak securities – 0.04% of the value of securities or Rs 27 whichever is higher


DP charges – Axis Bank

Consolidated DP charges by Axis Direct is the charges imposed on customers who are having an active demat & trading account. These charges constitute of annual maintenance charges, demat plus remat charges, debit charges, and Speed-e service charges, along with specific penalties (if any).

These Consolidated DP charges by Axis Direct are inclusive of CDSL/NSDL charges.


DP charges – Sharekhan

CDSL – Rs 5.5
Sharekhan – Rs 0


DP Charges – IIFL

CDSL – Rs 5.5

IIFL – 0.04% of the transaction value (Minimum Rs 25)


DP Charges – Upstox

CDSL – Rs. 18.5 + 18% GST = Rs. 21.83


Conclusion: DP Charges

Over to you!

That’s all for this post. Hope this clarified all your queries regarding DP charges and you learned everything you need to know about DP charges.

Are you satisfied by the DP charge levied by your broker?
Have any other questions regarding DP charges?

Feel free to comment below and all your queries will be answered.

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49 thoughts to “DP Charges – Everything you need to know”

  1. I am having an demat account with Axis Direct .Each and every time I sell any scrip a DP charges of Rs.50 is levied .Can you please explain me how the charge amount is becoming Rs.50 . I Want to know the calculation by doing which my charges are coming Rs.50

    1. As per the charges list given by Axis Direct they levy a charge of 0.06% of transaction value or Rs 50 (whichever is higher) for every debit transaction from your demat (sell)

      1. Is there DP charges for holding more than 1 Demat account? I am holding 1 demat account with ICICI bank and another with Zerodha. Recently somewhere around Rs.800 was deducted from my Linked bank account. I called up ICICI bank and the customer support guy gave me this reason.

        1. CHARGES FOR SETTLEMENT TRANSACTION FOR JULY/2020……this is the exact description for the charge. This charge is mentioned no where and ANGEL BROKING not telling the reason and meaning of this charge. Can u explain?

      2. what are the transaction settlement charges levied by ANGEL BROKING?…..This charges is levied every month and it is not DP charge. Then what kind of charge it is?

      3. There should not be any charges which are charged after the transaction done on market and a contract note is issued. Also it is in the knowledge of SEBI, so the matter be put before the concerned ministry for its ceasing, because either the demat fees be charged in contract note and charging it later which does not become a part of transaction is illegal.

  2. I have being charged by Depository Participant – Relaince without having any transaction for the year only because i am having the shares in the Depository as mandate by the Government. Which the same was not applicable when the person use to manually hold the share certificate with them.

  3. I have been charged rs 1019,2123,& 2269 in last three months in the name of consolidated dp charges from axis direct, please any one tell me that it is as per sebi law or bogus charges. I Have been suffering a lot of these charges.

  4. Axis Direct has charged several times randomly consolidated DP charges for close to be about Rs. 1700.
    Support says monthly billing shall provide the breakup of the same.
    DP charges are levied when your account is active and everytime you sell but when there is no sell transaction such charges ethically are not to be charged to the customers.
    When you try to reach them via mails they will not revert and incase if you try and reach their customer service they would keep transferring your call with nobody actually solving your query.
    There is no mention of DP charges when you open the account. While other brokers are transparent about the charges dp charges per sell transaction and do provide you with an invoice, Axis Direct do not.
    They have been fooling customers and charging substantial amount with no explanation and support.

    1. Same is my experience with ICICI direct. At the time of opening Demat account , I wad been told it’s a lifetime free account with no annual charges. There was no charges for 5-6 years and now all of a sudden, Rs.800 got deducted from my linked bank account as DP charges. I am not sure on what basis these charges are applied. I don’t do any trading. I have just invested in Mutual funds and haven’t sold any units from that as well.

  5. What happen is I sell delivery shares of different companies on same day? Would I have to pay DP charges for every sell of different companies shares or it would give once in a day of selling?

      1. What happen if I sell delivery shares of a company at different prices on a same day? Would I have to pay DP charges for every sell of same company shares or it would give once in a day of selling?

        1. Only once per day. It only depends on the number of DISTINCT companies whose shares you have sold on a given day.

      1. What about dp charges if sell same company share in tranches in whole 1 day
        As sell 5 tata motors in morning
        And then 1 then 6 at same day
        Is it levied 3 times or 1 time

  6. I have a trading a/c with Angel broking ltd.I purchased two scrips (India bull housing fin ltd, 30 shares & Shriram
    transport fin ltd, 50 shares) on 11-10-2018 and sold both these scrips on 12-10-2018 as per BTST, But on 1-11-2018 the Angel broking ltd realized INR 47.20 in the name of settlement charges from me, when I protested this
    for charging unfairly in writing twice to their executive manager, they are still not satisfied with my argument
    as the DP Charge is not applicable in this case, but they are bent upon their own philosophy that it is inter settlement charge, which has nothing to do with DP but they as a broker will always be charging in the same
    way in future also for BTST. So in this matter , is there anyone who can guide them? . To whom should I complain
    against their unfair charging, please guide me.

    1. Angel broking customer service is worst in such cases. They are deducting 206, 247 & 310 as Dp and Transaction settlement charges in last 3 months although I have done only 3-4 trades during this period. When asked on what basis I am being charged I am yet to get reply. Pending since 2 weeks

  7. Please don’t open Demat account with Axis bank; you will be looted. They are charging 2500 as AMC + Insurance for DP yearly. And for Equity delivery 177 RS (150 +17 GST)

  8. If a stock is purchased by clicking ‘delivery’ and then sold on the same day, Will I be charged with DP?

    (I have 5paisa app)

    1. Dp charges of angel broking is so high that whatever your Capital is gradually all of that get washed away on name of these bogus charges.
      I have paid Rs 3000 on name of dp charges and without even single penny as profit.all my capital has gone away

  9. Hi I had sell and purchased shares through HDFC demat account last week. and now Banker charged 862rs as Depositary charges for the month of April. is it debited every month or yearly once?

    1. I had open Demat account in Moti lal Oswal securities .I did not trade but in my account 176/ rupees debited for DP charges

  10. There are many good companies like zerodha, sasonline etc that have reasonable depository demat a/c charges.
    So leave this HDFC Demat a/c immediately & join the right one to save money.

    1. Zerodha is most transparent and the best among all. Whatever they deduct, everything is reflected in black & white. Standard dp charge of Rs. 13.5, only if stock is sold. There is no hidden charge. I m very much satisfied with Zerodha after some unsatisfaction with other brokers.

      1. What is the DP charges applicable for SBI Cap securities limited and are the charges applied on each share or scrip ?

  11. Suppose, I bought shares on Monday and sold them on Tuesday/Wednesday (T+2).
    Whether DP charges are applicable ?

    1. DP Charges will be applicable if you sold on Wednesday. It won’t be applicable if you sold on Monday or Tuesday.

  12. What is the charge at Angel broking for demat .if I sell a stock and buy it same day ?from my holding account.

  13. 5paisa is taking DP charges weekly basis and not only for selling they have charged me for Buying as well.

    Anyone please suggest should I change my broker.

    I am a very small investor and every week I am paying DP Txn charge so it is quite tough for me to make some profit after paying brokerage + DP TXN

  14. I buy 500 shares in a scrip today. I sell 400 shares after days, 50 shares after a month and 50 shares after a year. Will I incur DP charges everytime I sell or only for the first time? Can anyone please clarify ?

  15. i have demat account with I I F L. Broker charging brokerage for delivery stocks & every month debiting Rs 29.5/- on June,Rs 59/- on may & Rs 118/- on April. Only month of June I sell some shares.while opening account they ZERO brokerage for delivery. Please advise what to do.

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