You sold shares with a broker that advertises zero brokerage on delivery — and still saw a charge of around ₹20 hit your ledger. That is not a hidden fee or a mistake. It is a DP charge, levied on every sale, and it is the one demat cost that even the cheapest discount broker cannot make disappear. Here is why it exists, how it is calculated, and how to stop it eating small trades.
What are DP charges?
DP stands for Depository Participant — your broker in its role as the agent of the depository (CDSL or NSDL) that actually holds your shares in electronic form. A DP charge is a flat fee on every debit from your demat account, i.e. every time shares leave your account when you sell. It is charged per scrip, per day, regardless of how many shares or how large the value.
The crucial features:
- Charged only on the sell (debit) side — buying shares is free of DP charges.
- Flat — selling 1 share or 1,000 shares of the same company on the same day costs the same single DP charge.
- Per company (ISIN) — selling three different stocks the same day means three DP charges.
- GST applies on top.
Why even zero-brokerage brokers charge it
Brokerage and DP charges are two different things. Brokerage is the broker's own fee for executing a trade — that is what discount brokers waive on delivery. A DP charge is partly a pass-through to the depository (CDSL/NSDL bills the DP a few rupees per debit), with the broker adding a markup. Because the depository portion is a genuine third-party cost, no broker can take the DP charge to zero on a standard plan. When a broker says "zero brokerage", read it as "zero brokerage" — the DP charge still applies on sells.
How a DP charge is calculated
A typical DP charge is in the range of ₹13-25 per scrip per sell day plus GST, depending on the broker's markup. It does not scale with trade size:
| What you sold (same day) | DP charges incurred |
|---|---|
| 500 shares of one company, in one order | 1 charge |
| 500 shares of one company, sold across 3 orders same day | 1 charge (same scrip, same day) |
| 3 different companies, one order each | 3 charges |
| Buying any number of shares | ₹0 (no DP charge on buys) |
Exact per-broker figures vary; our demat charges comparison lists them broker by broker alongside AMC and other fees.
The trap: why DP charges punish small sells
Because the charge is flat per scrip, it hurts small sales the most. Sell ₹500 worth of one stock and a ₹20 DP charge is a punishing 4% of the trade. Sell ₹50,000 of the same stock and ₹20 is a rounding error. The investors who feel DP charges hardest are those who sell tiny quantities across many different stocks — a portfolio of dribbles.
How to reduce DP charges
- Consolidate sells. If you are exiting a position, sell it in one day rather than dribbling across a week — same scrip, same day is one charge.
- Avoid many tiny exits. Selling 1 share each of 10 companies triggers 10 DP charges. Batch or rethink micro-sells.
- Check for DP-free plans. A few brokers fold DP charges into a monthly/subscription plan or waive them on specific account types — weigh that against their other fees in our best demat accounts comparison.
- Hold long-term. DP charges hit on every sell, so a buy-and-hold approach naturally incurs them rarely. They are a non-issue for SIP-style equity investors who rarely sell.
DP charges are small in absolute terms but they are real, unavoidable on sells, and disproportionate on tiny trades — the kind of buried cost we map across every demat fee in our charges work. Knowing the mechanic lets you avoid paying it five times when once would do.
Frequently Asked Questions
What are DP charges in a demat account?
DP (Depository Participant) charges are a flat fee levied every time shares are debited from your demat account, which happens when you sell. They are charged per company (ISIN) per day, regardless of the number of shares or the trade value, and GST applies on top. Buying shares does not attract DP charges — only selling does.
Why am I charged DP charges on a zero-brokerage account?
Brokerage and DP charges are separate. Brokerage is the broker's execution fee, which discount brokers waive on delivery. A DP charge is partly a pass-through to the depository (CDSL or NSDL), which bills the broker a few rupees per debit, plus the broker's markup. Because the depository portion is a real third-party cost, no broker can reduce the DP charge to zero on a standard plan, even with zero brokerage.
How much are DP charges?
DP charges are typically in the range of ₹13-25 per scrip per sell day plus GST, depending on the broker's markup. The charge is flat — it does not increase with the quantity or value of shares sold. Selling more of the same stock on the same day still counts as a single DP charge; selling different stocks the same day incurs one charge each.
Are DP charges applied when I buy shares?
No. DP charges apply only on the sell side, when shares are debited from your demat account. Buying shares, which credits your account, does not attract a DP charge. This is why frequent sellers feel DP charges far more than buy-and-hold investors.
How can I reduce DP charges?
Consolidate sells of the same stock into a single day rather than spreading them across days, avoid selling tiny quantities of many different stocks at once, check whether your broker offers a plan that folds DP charges into a monthly fee or waives them, and lean towards long-term holding so you sell rarely. Because the charge is flat per scrip per day, batching your exits is the simplest saving.
Sources: CDSL and NSDL depository charge schedules; broker DP tariff disclosures. Exact DP charge varies by broker; confirm the current figure on your broker's pricing page. Current as of 2026.