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Understand the meaning of DP charges, when they apply, how they are calculated, and how they differ from other demat account charges.
Last updated on: Jun 24, 2026
DP charges meaning, depository participant charges, are the fee levied when securities are debited from a demat account during a sell or transfer transaction. These charges are also known as depository participant charges and form part of the demat account transaction cost structure.
DP charges are fees levied when securities are debited from a demat account through a Depository Participant. A Depository Participant is an intermediary registered with a depository such as CDSL or NSDL.
Depository participant charges apply mainly when securities move out of a demat account. These depository charges are not levied on buy transactions because buying results in credit of securities, not debit.
In simple terms, DP charges are linked to the movement of securities from the demat account, not to the trade value or number of shares sold.
DP charges are levied at specific points in the securities settlement process, as follows:
When securities are sold from a demat account, the broker initiates the settlement process through the depository framework.
The depository, either NSDL or CDSL, processes the debit of securities from the demat account.
A DP charge is levied when securities are debited from the account.
DP charges are commonly levied on a per-ISIN-per-day basis, though the exact charging methodology may vary depending on the Depository Participant's tariff schedule.
The total charge may include the depository component and the Depository Participant or broker component.
Also Read: CDSL vs NSDL: Key Differences
Depository participant charges may apply in different demat account transaction contexts.
DP charges are commonly levied when securities are sold and debited from the demat account during settlement.
Depository participant charges may apply when securities are transferred from one demat account to another outside an exchange trade.
Charges may apply for pledge, unpledge, or related depository instructions, depending on the Depository Participant’s tariff schedule.
The table below shows a common calculation structure used to explain DP charges:
| Component | Amount Charged |
|---|---|
CDSL Transaction Fee |
₹5.50 per ISIN per day, plus GST |
NSDL Transaction Fee |
₹5.00 per ISIN* per day (plus GST) |
NSDL Transaction Fee |
₹5.00 per ISIN per day, plus GST |
Broker Fee |
Varies as per broker tariff |
GST |
18% on the total charge |
* Illustrative example only. Actual charges may vary.
ISIN means International Securities Identification Number. It is a unique identification code assigned to each security.
Assume shares of Company A are sold from a demat account on a given day:
Depository Component: CDSL charges ₹5.50
Broker Component: Broker charges ₹10
Subtotal: ₹15.50
GST at 18%: ₹2.79
Total DP Charges: ₹18.29
Whether 1 share or 100 shares of Company A are sold on the same day, the DP charge remains the same per ISIN per day.
DP charges are linked to the depository and Depository Participant structure.
Depository: NSDL or CDSL levy charges on Depository Participants as per their tariff schedules. Depository Participants may recover applicable charges from account holders according to their disclosed pricing structure.
Depository Participant: The broker, bank, or financial institution acting as the DP may levy its own component.
GST Component: GST at 18% is applied on the total applicable charge.
Also Read: Role of Depositories in Demat Account
DP charges are levied for the operation of the electronic securities settlement and record-keeping system.
System Maintenance: Depository systems maintain electronic records of securities ownership.
Regulatory Compliance: DP charges support processes linked to regulated securities settlement.
Record Keeping: Debits and transfers are recorded within the depository system.
Transaction Processing: Charges apply for processing and reconciling debit instructions.
DP charges are applied per ISIN per day. If securities from the same ISIN are sold multiple times on the same day, the charge is levied only once for that ISIN on that day.
The total charge includes the depository component, the DP or broker component, and GST at 18%.
Also Read: Demat Account Holding Statement
DP charges and brokerage charges have different triggers and are levied by different parties.
| Basis | DP Charges | Brokerage Charges |
|---|---|---|
Meaning |
Charges for debiting securities from a demat account |
Charges for executing buy or sell orders |
Levied By |
Depository and Depository Participant |
Stockbroker |
Trigger |
Debit of securities from demat account |
Execution of trade order |
Basis |
Usually per ISIN per day |
May depend on broker tariff or trade value |
Applies On |
Sell or transfer transactions involving demat debit |
Buy and sell transactions as per broker tariff |
DP charges relate to securities movement from the demat account, while brokerage relates to trade execution.
DP charges and AMC charges are separate demat account-related costs.
| Basis | DP Charges | AMC Charges |
|---|---|---|
Full Form |
Depository Participant Charges |
Annual Maintenance Charges |
Trigger |
Debit of securities from demat account |
Maintenance of demat account |
Frequency |
Transaction-based |
Periodic or annual |
Applies When |
Securities are sold or transferred |
Account is maintained, even without transactions |
Charged By |
Depository Participant and depository |
Depository Participant |
DP charges are linked to demat debit transactions, while AMC is linked to account maintenance.
DP charges are part of India’s electronic securities settlement framework and apply when securities are debited from a demat account. DP charges meaning is linked to the role of Depository Participants and depositories such as NSDL and CDSL in processing securities movement.
Understanding the structure, applicability, and calculation of DP charges forms part of the broader knowledge of how demat account transactions operate within India’s securities settlement framework.
Reviewer
DP charges are fees levied when securities are debited from a demat account during a sell or transfer transaction. These charges are linked to the Depository Participant and depository processing of securities movement.
DP charges are not applicable on buying shares because buy transactions result in credit of securities into the demat account. DP charges apply when securities are debited from the demat account.
DP charges are not applicable to intraday trading because intraday trades are squared off within the same trading day and do not result in delivery of securities from the demat account.
DP charges paid can be viewed in the account ledger or transaction statement issued by the Depository Participant or broker. Transaction records may also be accessed through depository platforms such as CDSL EASI/EASIEST or NSDL SPEED-e.
The depository component of DP charges is fixed by the depository, while the broker or Depository Participant component may vary. Each intermediary discloses applicable charges in its tariff schedule.
DP charges apply when mutual fund units held in demat form are sold or transferred from the demat account. Mutual fund units held in non-demat Statement of Account form are not subject to demat debit-related DP charges.
DP charges are calculated as the depository component plus the Depository Participant or broker component, with GST applied on the total. The charge is applied per ISIN per trading day, regardless of the number of shares sold.
The depository component of DP charges is fixed by NSDL or CDSL. The Depository Participant or broker component may vary based on the tariff schedule disclosed by the intermediary.
DP charges are generally deducted when the sell or transfer transaction is settled and securities are debited from the demat account. The amount appears as a debit in the ledger or account statement.
DP charges are levied for debiting securities from a demat account, while brokerage charges are levied by the stockbroker for executing buy or sell orders. Both charges have different triggers and are disclosed separately.
DP charges are associated with the processing of securities debits and related depository services carried out through the Depository Participant and depository infrastructure.
The treatment of DP charges for tax purposes depends on applicable tax provisions and individual circumstances. Reference may be made to current Income Tax rules or guidance from a qualified tax professional.
DP charges are paid by the account holder whose demat account is debited during a sell or transfer transaction. The charge is usually deducted from the linked trading account or ledger balance at settlement.
DP charges are transaction-based fees levied when securities are debited from a demat account. AMC, or Annual Maintenance Charges, is a periodic fee charged for maintaining the demat account, regardless of transaction activity.
DP charges are levied per ISIN per trading day, not per individual share. If shares of the same company are sold multiple times on the same day, DP charges are generally applied once for that ISIN.
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