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What is DP charges?

There are 2 depositories who work as custodian of our securities and their names are NSDL & CDSL. You need to open you’re demat account with Depository participants who are members of Depositories (Eg: IL&FS, Zerodha, ICICI Direct, Sharekhan etc). The Depositories participants would charge for their services whenever you sell any shares from your demat account and called as DP charges. DP charges are main source of revenue to the Depositories & its participants.

DP charges are a flat transaction fee levied on the sell side of delivery trades irrespective of the quantity you sold. So the fee levied is per scrip and not the number of shares sold.

Normally four kinds of charges are being charged by the DPs on a demat account: account opening fee, annual maintenance fee, custodian fee, and transaction fee. The quantum of charges would vary from DP to DP.

  • Account-opening fee
  • These charges are for normally for managing the administrative expenses incurred for opening the Demat account, these are one time in the nature and charged at the time of opening of Demat account, lot of Dps are waiving off these charges as promotion.

  • Annual maintenance fee
  • This is additionally called as folio maintenance charges, and is usually levied in advance .It can be charged on annual or monthly basis.

  • Transaction fee
  • These fees charged mainly on monthly basis on all the transaction of buying /selling of securities to and from the account. The charges would depends on DP to Dp , some DPs, such as SBI, charge a flat fee per transaction, HDFC Bank and ICICI Bank pay the fee based on the transaction value, which would subject to a minimum amount. The transaction fee also would be different for buying and different for selling and would be based on the kind of transaction. Some DPs charge only for buying the securities, while some charge for both. In addition, service tax is also charged by the DPs

  • Demat / Remat fee
  • In addition to the other charges, the DP also charges a fee for converting the shares from the physical to the electronic form or vice versa. This charges may varies for both demat (physical-to-electronic) and remat (electronic-to-physical) requests.For demat transactions, some DPs charge a flat fee per request in addition to the variable fee per certificate, while others charge only the variable fee.

FAQs about DP Charges:

  1. 1.How to avoid DP Charges?

    There is no way you can avoid DP charges in Delivery Trade. lot of investors & traders have this question of avoiding or reducing the DP charges but the same is unavoidable incase of Delivery Trade. However there are 3ways in which you can avoid DP Charges , if you close your position intraday, By Taking BTST Trade and By Trading in F&O Segment.

  2. 2.Is dp charges applicable for intraday trading?

    No, DP Charges are not applicable incase you close your position Intraday.

  3. 3. Is dp charges applicable for BTST?

    No, DP Charges are not applicable on BTST Trade.

  4. 4. When dp charges are levied?

    DP charges are applicable whenever you sell any shares from your demat account.

  5. 5. Is dp charges applicable on Mutual Funds?

    If you have mutual funds in dematerialised forms then DP charges are applicable whenever you sell them from your demat account.

  6. 6. When dp charges are levied?

    DP charges are applicable whenever you sell any shares from your demat account.

  7. 7. What is dp charges in zerodha?

    Zerodha DP charges are Rs.13.5 + GST (Rs 5.5 CDSL charges + Rs 8 charged by Zerodha) applicable whenever you sell any shares from your demat account.

  8. 8. What is dp charges in ICICI Direct?

    ICICI Direct DP charges are Rs.4.5 + GST applicable whenever you sell any Scrip from your demat account.

  9. 9. What are dp charges in angel broking?

    Angel Broking DP charges are Rs. 20 + GST applicable whenever you sell any Scrip from your demat account.

  10. 10. What are dp charges in 5paisa?

    5paisa DP charges are Rs. 25 or 0.025% which ever is higher applicable whenever you sell any shares from your demat account.

  11. 11. What is dp charges in Axis Direct?

    Axis Direct DP charges are 0.04% of the value of the transaction or Rs.25/- (per Instruction) whichever is higher are applicable whenever you sell any Scrip from your demat account.

  12. 12. What is dp charges in Sharekhan?

    Sharekhan DP charges are Rs. 5.5 + GST applicable whenever you sell any Scrip from your demat account.

  13. 13. What is dp charges in hdfc securities?

    HDFC Securities DP charges are 0.04% of the value of the transaction or Rs.25/- (per Instruction) whichever is higher are applicable whenever you sell any Scrip from your demat account.

  14. 14. What is dp charges in Upstox?

    Upstox DP charges are Rs.18.5 + GST (Rs 5.5 CDSL charges + Rs 13 charged by Upstox) applicable whenever you sell any shares from your demat account.

  15. 15. What is dp charges in Motilal Oswal?

    Motilal Oswal DP charges are 0.04% of the value of the transaction or Rs.40/- (per Instruction) whichever is higher for trade Outside MOFSL and 0.03% of the value of the transaction or Rs.30/- (per Instruction) whichever is higher for trade Inside MOFSL are applicable whenever you sell any Scrip from your demat account.

  16. 16. What is dp charges in sbismart?

    SBISmart DP charges are 0.01% of the value of the transaction or Min. Rs.21/- or Max Rs.300 (per Instruction)for instruction submitted through internet are applicable whenever you sell any Scrip from your demat account.

  17. 17. What is dp charges in Kotak Securities?

    Kotak Securities DP charges are Rs 4.5 NSDL charges + 0.04% of the value of the transaction or Min. Rs.27/-(per Instruction) are applicable whenever you sell any Scrip from your demat account.