What are DP charges in a demat account?

DP charges are fees for moving shares out of your demat account, and they’re split between two entities: the depository (NSDL or CDSL, which maintain the electronic records) and the Depository Participant, which is the broker or bank giving you access to that depository. In practice, most brokers bundle both into a single line item on the contract note, commonly charged per company, per day, on a sell transaction, regardless of quantity sold. So if you sell 10 shares of one company and 500 of another on the same day, you’re typically charged DP charges twice, once per company, not once per trade. Buying shares for delivery doesn’t usually attract DP charges, only selling does, since that’s when shares actually move out of the depository account. You check the broker’s DP charge slab specifically before selling small quantities, because on a low-value sell, DP charges can eat a noticeable percentage of the proceeds.