What do DP charges mean?
DP charges are applicable whenever you sell any shares from your demat account. This charge is a source of revenue to the depositories and its participants. 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 scrip 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.Important note:
- 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.
- 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.