DP charges refer to Depository Participant charges, which are levied on all sell transactions through a Demat account. These charges are exclusive of brokerage and are not reflected in contract notes. DP charges are the revenue source for depositories and their participants. They are a flat transaction fee, irrespective of the quantity sold. The charge is per scrip and not the volume sold, so it remains the same whether you sell one share or 100 shares. DP charges are generally fixed and not like other charges, such as brokerage fees, stamp duty, etc. The depositories charge a flat fee for all transactions, which is Rs 13 plus GST. However, depository participants are free to charge a different amount. The charge is credited to the Demat account within two days when you buy a stock. DP charges are not listed in the contract notes, so you are unable to view them.

The depositories, such as Central Depository Services (India) Limited (CDSL) and National Securities Depository Limited (NSDL), levy DP charges. Depository participants, such as banks, financial institutes, and stockbrokers, also levy DP charges. DP charges are generally high as they are the only source of income for the depository and its participant.

DP charges are not applicable on intraday trading, but only on delivery trading. You can avoid DP charges by executing an intraday trade, taking part in BTST trading, or making a Futures trade.