Depository Participant (DP) charges levied by CDSL(depository) is a charge applicable whenever you sell shares from your DEMAT account. It is similar to how exchanges charge a transaction fee or how brokers charge brokerage.

DP Charges are levied by the Depository (CDSL) and the Depository Participant (Zerodha Broking Ltd) at Rs. 13.5 (+ 18% GST) per day per scrip(stock) for the stocks sold from your holdings. The stock will be moved out of your DEMAT account on the day you place your sell order.

For example:

If you sell 50 shares of X in the morning and 50 shares of X in the afternoon, the total applicable DP charges for that scrip(stock) for the day will be Rs. 13.5 + 18% GST.

If you sell 50 shares of X in the morning and 50 shares of Y in the afternoon, the total applicable DP charges for the day will be Rs 13.5 + Rs 13.5 = Rs 27 + 18 % GST since multiple scrips are being sold.

Important note:

1. DP charges are directly posted on the ledger and do not appear on the contract note. It is charged once per scrip on one day irrespective of the quantity sold. Read this article for more information.
2. Effective from May 3, 2019, DP charges of Rs 5.5+GST for the redemption of mutual funds are no longer charged. More information here .
3. For BTST transactions, since the shares get credited to your Demat account and then debited, there will be DP charges that will be applicable like normal delivery transactions. More here .