Term

DP Charges Meaning and Example

DP Charges are the charges you pay when you sell your shares. It’s charged each time you sell shares of a company.

The number of shares does not matter. Whether you sell 1 shares or 100 shares, the DP Charges will be the same.

DP Charges means Depository Participant charges – part of which goes to the Depository (CDSL or NSDL) and the rest of it goes to the brokerage companies (Zerodha, ICICI etc).

All brokerage companies charge this fee, but the charges can vary from one broker to another.

DP Charges Example

Let’s say your broker is Zerodha. The company charges ₹ 13.5 (plus GST) per script on the day you sell your shares.

Day 1: You buy 10 shares of Reliance Industries and 10 shares of Infosys. These shares are deposited in your Demat account. You do not have to pay any DP Charges when you buy.

Day 5: You sell 2 shares of Reliance and 2 shares of Infosys. Total DP Charges would be ₹ 31.86. You sold shares of two different companies, so it would be 13.5 x 2 = 27 + 18% GST. Total 31.86.

Day 6: You sell 1 share of Reliance. Total DP charges would be ₹ 15.93. Since you sold shares of only one company, the charges will be 13.5 + 2.43 (18% GST on 13.5).

Day 7: You sell 5 shares of Infosys. Total DP charges would be ₹ 15.93. The number of shares does not matter.

Do note: Government taxes and brokerage charges are different from DP Charges. It’s applicable on every transaction you make – both when you buy and sell share.

Does Broker earn DP Charges?

The DP Charges that you pay is shared between the Depository (CDSL or NSDL) and the Depository Participant (i.e the broker, Zerodha or others).

Zerodha uses CDSL as its depository. So, out of the ₹13.5 you pay – CDSL gets ₹ 5.5 and Zerodha gets the remaining ₹ 8.

If you are wondering what is CDSL, it is one of the two depositories in India. CDSL is promoted by Bombay Stock Exchange. It’s a listed company in the stock market. The other depository is NSDL.

The shares you buy are not stored with your broker. It’s stored safely with the depository.

The article explaining what is ‘DP Charges’ ends here. Below, we will be listing DP Charges of all major brokerage companies.

ICICI DP Charges

ICICI Bank or ICICI Direct does not charge ‘DP Charges’ separately. It’s included in the cost of each transaction – which is a minimum of ₹ 35 or 0.55% of the transaction value. This brokerage fee of 0.55% is not charged by discount brokers like Zerodha or Upstox.

HDFC DP Charges

HDFC Bank or HDFC Securities does not charge ‘DP Charges’ separately. It’s included in the cost of each transaction – which is a minimum of ₹ 25 or 0.5% of the transaction value. The charges are very similar to ICICI Direct, but HDFCSec charges lower brokerage.

Upstox DP Charges

Upstox charges ₹ 18.5 (not including GST) as DP charges. These charges are significantly higher than Zerodha.

One point worth mentioning – On their website, this is what they say:

DP Charges Meaning and Example 1

This is a little misleading. Upstox makes it seem that the charges are levied by CDSL – which is only partially correct. Out of the ₹ 18.5 that they charge, only ₹ 5.5 goes to CDSL. The remaining ₹ 13 goes to Upstox.

Angel Broking DP Charges

Angel charges ₹ 20 as DP Charges. Out of which ₹ 5.5 goes to CDSL and the remaining ₹ 14.5 is earned by Angel Broking.

Kotak DP Charges

Kotak Securities charges only ₹ 4.5 as DP Charges, which goes directly to NSDL. However, like ICICI and HDFC they have heavy brokerage charges when you take delivery of shares into your demat account.

You would need to pay a minimum of ₹ 27 or 0.49% of the transaction value, whichever is higher.

To make it simpler, suppose you sell shares worth ₹10,000. You would need to pay ₹ 49 (Brokerage fee) + ₹ 4.5 (DP charge) + GST of 18%.

Sharekhan DP Charges

ShareKhan charges ₹ 5.5 as DP Charges, which goes directly to CDSL. Their brokerage structure is similar to ICICI, HDFC and Kotak. They charge minimum of ₹ 16 or 0.5% of transaction value as brokerage fee.

5Paisa DP Charges

Discount broker 5Paisa claims to have the lowest DP Charge in the industry. The company charges ₹ 12.5, out of which ₹ 5.5 goes to CDSL and 5Paisa earns ₹ 7.

However, there is a brokerage fee of ₹ 20 on their basic plan. So, if you sell shares, you will be charges ₹ 20 + 12.5 + 18% GST – which would be ₹ 38.35 when you sell shares, quantity and transaction value does not matter.

Axis Consolidated DP Charges

Axis Direct has a different approach to DP Charges. It appears as ‘Consolidated DP Charges’ in the statement and is charged once a year (at the end of the year). There have been several complaints related to this by customers of Axis Direct.

If you liked the article, do follow us on WhatsApp, Twitter, Instagram and Facebook.
Whatsapp Follow

10 Comments

  • I have a doubt.
    Suppose I sell my shares from demat account dp charges are charged.
    Suppose I sell my 100 shares of CANBK from my demat account part by part on the same day how many times will dp charges be applied?
    Example
    10 am 20 shares CANBK
    11am 20 shares CANBK
    1 00 pm 40 shares CANBK and
    2 pm 20 shares CANBK total 5 times. 100 shares.
    Now what will be my dp charges.

    • Hi John

      Since you are selling the shares of the same company (CANBK) on the same day, you will be charged DP Charges only once.

      If you sell CANBK and HDFC Bank shares on the same day, DP Charges will be charged twice.

      If you sell some shares of CANBK today and some shares tomorrow. Then DP Charges will be charged twice, once for today and again for tomorrow.

      Hope that is clear.

      If you have more questions, feel free to ask.

  • I have shares in the same company but different stocks for example adanitrans, adanipower. How DP charges will apply in this case if I sell on the same day? And Each stock will sell on different days?

    • @Kiran, they are all separately listed companies, so DP charges will be charged for each company separately.

      So even if sell Adani Power and Adani Transmission on the same day, DP charges will be charges twice.

      If you sell more shares on different days, again DP charges will be charged.

  • If I buy 1 Reliance stock today and buy another 1 tomorrow and the third day I sell both at one time, then how much DP charges I have to pay.

    • @Alikesh, you don’t pay DP charges when buying. You only pay DP charges when selling. So for your example, if you sell on the third day.. you will pay DP charges only on that day.

      Let’s take another example. Let’s say the DP charges is fixed at 10 rupees by the broker.

      Now, let’s also say you have 5 shares of Reliance. You sell 1 share today, sell 1 more tomorrow and sell 3 the day after. You will be paying ₹ 10 on Day 1, ₹ 10 on Day 2 and ₹ 10 on Day 3. The charges are fixed per script per day. The quantity of shares does not matter.

  • Lets consider an example where they charge Rs 10 as DP charge out of which 5.5 goes to NDSL and remaining amount goes to the broker. Why do they charge additionally as brokerage fee?

    • @Nishita, that’s a good question which can only be answered by a broker 🙂 Additional income for them each time you sell shares.

  • Hi, what if I buy 10 shares of xyz company on day 1 at CNC option and sell them same day before getting actual delivery of shares. Will still be charged DP charges?

  • If I buy 10 shares of 1000 today then sell these shares after 2 years what would be my dp charges do i have to pay 5.5 to cdsl per day means (5.5*730days) 4000aproxx plz explain it

Leave a Comment