DP Charges Explained: CDSL, NSDL & How They're Calculated
Most new investors discover DP charges the hard way — they sell a stock, check their contract note, and find a deduction they didn't expect. It's one of those charges nobody mentions when you open a Demat account, but it shows up every single time you sell.
Here's exactly what DP charges are, who levies them, how much they cost, and when the rules change.
DP charges — short for Depository Participant charges — are fees collected every time you sell shares held in your Demat account. India has two depositories that handle this: CDSL (Central Depository Services India Limited) and NSDL (National Securities Depository Limited). One of the two will be linked to your Demat account depending on which depository your broker is registered with.
These charges apply specifically on sell transactions — including BTST (Buy Today Sell Tomorrow) trades, where securities are debited from your account before the standard settlement cycle completes. Buying shares doesn't trigger DP charges at all; the deduction only happens when shares leave your account.
When you place a sell order through your broker, the broking system automatically deducts DP charges at the time of settlement. Two components make up the total: the depository's fee and your broker's own DP charge, with 18% GST applied to the combined figure.
Many investors see this on their contract note and assume something went wrong — because nobody warned them it was coming. It's a normal, expected deduction. The contract note is the right place to look; DP charges don't show up in your ledger.
CDSL and NSDL charges per transaction
CDSL levies ₹5.50 per scrip per trading day. NSDL charges ₹5.00 per scrip per trading day. The difference is small in absolute terms, but it adds up if you're trading multiple scrips regularly.
Broker DP charges — and why they vary so much
On top of the depository's fee, your broker adds their own DP charge. This figure differs across brokers — some charge ₹10, some ₹15, some as high as ₹20 or ₹25 per scrip. There's no standard. Before assuming any particular amount, check your broker's published schedule of charges. Most brokers list this clearly on their website, but it's easy to miss when you're setting up an account for the first time.
The per-scrip rule is what trips people up most. Here's how it plays out in practice.
Assume your broker is registered with CDSL and charges ₹15 as their DP fee per scrip.
Case 1 — Same scrip sold twice in one day: You sell 50 shares of ABCD Ltd in the morning, then another 50 shares of ABCD Ltd in the afternoon. Because it's the same scrip, the depository counts it as a single debit event. Total DP cost: ₹15 (broker) + ₹5.50 (CDSL) = ₹20.50 + 18% GST.
Case 2 — Two different scrips sold in one day: You sell 50 shares of ABCD in the morning and 50 shares of EFGH in the afternoon. Two different scrips means two separate charges. Total DP cost: ₹30 (broker, twice) + ₹11 (CDSL, twice) = ₹41 + 18% GST. If your broker is registered with NSDL instead of CDSL, the depository portion drops to ₹10 (₹5.00 × 2), so your total comes to ₹30 + ₹10 = ₹40 + 18% GST.
The rule is consistent: one charge per scrip per day, regardless of how many times you trade that same stock during that session.
Rule 1: DP charges appear on the contract note, not the ledger. After your sell order settles, check the contract note for the DP deduction. Looking for it in the ledger is the most common mistake — it won't be there. The contract note shows the full breakdown, including the depository fee, broker charge, and GST separately.
Rule 2: One charge per scrip per day — always. Selling the same stock three times in a day still results in just one DP charge for that scrip. Selling three different stocks in a day means three separate DP charges. The count is by scrip, not by number of trades or number of shares.
Rule 3: Mutual fund redemptions are exempt — since May 2019. From 3rd May 2019 onwards, the government removed DP charges from mutual fund redemptions. Before that date, redeeming mutual fund units held in Demat form triggered the same depository charge as selling stocks. That's no longer the case. If you're redeeming mutual funds today, no DP charge applies to that transaction.
What are DP charges in the stock market?
DP charges are fees levied by a depository — CDSL or NSDL — every time you sell shares from your Demat account. They cover the cost of transferring ownership of securities out of your account when a sell order is executed. CDSL charges ₹5.50 per scrip and NSDL charges ₹5.00, with 18% GST added on top of both. Your broker also adds their own DP fee, which varies by broker and can range from ₹10 to ₹25 or more.
Are DP charges applied when buying stocks?
No — DP charges only apply when you sell. Buying shares credits securities into your Demat account, which doesn't trigger a depository charge. The charge kicks in on the sell side, when shares are debited from your account and transferred to the buyer. This covers regular delivery trades and BTST trades alike — both involve a debit from your Demat account, so both attract DP charges.
How are DP charges calculated when selling multiple stocks in one day?
DP charges are levied per scrip, not per trade or per share. Selling two different stocks on the same day means two separate charges. But selling the same stock multiple times in a day counts as one scrip and attracts only one DP charge. With a CDSL-registered broker charging ₹15, selling two different scrips costs ₹30 (broker) + ₹11 (CDSL) + 18% GST. Check your specific broker's rate before assuming any standard figure.
Do DP charges apply to mutual fund redemptions?
Since 3rd May 2019, mutual fund redemptions are exempt from DP charges. Before that date, redeeming mutual fund units held in Demat form triggered the same depository charge as a stock sale. That rule no longer applies — if you redeem mutual funds today, no DP charge appears on the contract note for that transaction.
Where do I see DP charges after selling stocks?
DP charges show up on your contract note after settlement — not in your trading ledger. Many new investors search the ledger first, don't find the charge, and assume it wasn't deducted. It was. The contract note breaks down the depository fee and broker charge separately, with GST shown on both. If the amounts look different from what you expected, compare them against your broker's published schedule of charges — the actual figures should match exactly.
Your email address will not be published. Required fields are marked *