DP charges explained: the fee you pay every time you sell
Every time you sell shares from your demat account, a small flat fee is deducted — the DP (Depository Participant) charge. It doesn't depend on how many shares you sell or their value. Sell 1 share of a ₹50 stock or 500 shares of a ₹2,000 stock: the DP charge for that scrip on that day is the same. For small delivery trades, this flat fee is often the single biggest cost — bigger than brokerage, STT and GST combined.
What are DP charges?
DP charges are a fee collected when shares leave your demat account on a sell transaction. It is charged per scrip, per day — not per order. If you sell one company's shares in three separate orders on the same day, you pay the DP charge once. If you sell three different companies' shares, you pay it three times. Buying shares attracts no DP charge at all.
Who actually charges it — broker or depository?
Both, in parts. India has two depositories — CDSL and NSDL — that hold your shares electronically. Your broker is the Depository Participant that connects you to them. The depository charges the broker a base fee per debit instruction, and the broker adds its own margin on top. The combined amount appears in your ledger as "DP charges" or "Dmat transaction charges", plus 18% GST.
How much are DP charges at major brokers?
Rates differ by broker because each adds a different markup over the depository's base fee. Typical published rates (per scrip, per sell day, GST extra unless noted):
| Broker | DP charge (per scrip/day) | Notes |
|---|---|---|
| Zerodha | ₹15.34 (incl. GST) | ₹13 + GST, CDSL |
| Groww | ₹16.50 approx | Charged on sell only |
| Upstox | ₹20 + GST | Per scrip per day |
| Angel One | ₹20 + GST | Per ISIN per day |
| Dhan | ₹12.50 + GST | Per scrip per day |
Rates change; always confirm on your broker's charge sheet before assuming.
Why do DP charges hurt small trades the most?
Because the fee is flat, its percentage impact explodes as trade size shrinks. Sell ₹50,000 of shares and a ₹15.34 DP charge is 0.03% — invisible. Sell ₹1,000 of shares and the same fee is 1.5% of the trade — often more than any profit you made. Anyone doing small delivery trades or SIP-style selling in multiple scrips should count DP charges before brokerage.
How do you calculate the DP charge impact on a trade?
Follow this quick sequence for any delivery sell:
- Note your broker's DP charge per scrip (e.g. ₹15.34 at Zerodha, GST included).
- Count the distinct stocks you're selling that day — multiply the fee by that count.
- Add brokerage, STT (0.1% on delivery), exchange charges, SEBI fees and stamp duty.
- Subtract the total from your gross profit to get your real net P&L.
Or skip the manual math — our free brokerage calculator adds DP charges automatically on delivery sell trades and shows your exact net P&L, while the P&L target calculator tells you the exit price you need to cover every charge.
Are DP charges applied on intraday or F&O trades?
No. DP charges apply only when shares actually leave your demat account. Intraday equity trades are squared off the same day, so no demat debit happens. Futures and options positions aren't held in demat form either. Only delivery sells — including BTST sells that debit your demat — attract the fee.
Can you avoid or reduce DP charges?
You can't avoid them on delivery sells, but you can manage them: batch your exits so you sell a scrip once instead of across many days, prefer fewer larger positions over many tiny ones if your strategy allows, and compare broker DP rates if you're a frequent delivery seller — the gap between ₹12.50 and ₹20+GST compounds over hundreds of sells. Some brokers also waive or discount DP charges for women account holders or under specific plans, so check your broker's current schedule.
Educational content only, not investment advice. Charges quoted are indicative and change over time; confirm current figures on your broker's official pricing page.