What does Depository Participant (DP) charge mean?

The Depository Participant (DP) charge is a fee imposed by the depository participant (Tradejini), when you sell shares from your demat account. This charge amounts to ₹14.50, including ₹5.50 Depository (CDSL) charges. Additionally, there is an 18% GST applicable to this charge. It’s important to note that these charges are debited on a daily basis for each stock sold, regardless of the quantity sold. In case your transactions do not result in delivery then there will not be any charges.

For instance, let’s consider a few scenarios:

1. If you sell 500 shares of Tata at 11:10 AM and another 50 shares at 2:15 PM, the total DP charge for the day would be ₹14.50 + 18% GST will be charged twice as you have sold shares in two seperate orders in the same day. Therefore the total DP charges for the day will be ₹29 + 18% GST.

2.Had it been one shot sale of 550 shares of Tata then only one time DP charges would have been applicable and the total charges for the day will be ₹14.5 + 18% GST

3. If you sell 50 shares of Tata at 10:00 AM and 10 shares of Infosys at 2:00 PM, the total DP charges for the day would be ₹29 + 18% GST (₹14.50 multiplied by 2).

Read to know why DP charges are not shown in the Contract note?