DP Charges in Zerodha Explained Clearly

Every stock market investor with a Demat account eventually encounters the term DP charges. These fees appear in the ledger after selling stocks, and for many Zerodha users, they are often confusing because they are not shown on the contract note. Understanding DP charges in Zerodha helps you calculate the real cost of selling shares and avoid unexpected deductions.

This guide explains what DP charges in Zerodha are, when they apply, how much they cost, why they matter even with zero delivery brokerage, and how you can minimise them. It also includes examples, calculations, and FAQs to give you a clear, data-driven understanding.

Table of Contents

1. What Are DP Charges?
2. When Do DP Charges Apply in Zerodha?
3. Current DP Charges in Zerodha
4. How DP Charges Appear in Your Ledger
5. Examples of DP Charge Calculations
6. Trades That Do NOT Attract DP Charges
7. How to Minimise or Avoid DP Charges
8. Why DP Charges Matter Even in Zero-Brokerage Plans
9. Conclusion
10. FAQs

What Are DP Charges

DP charges are fees charged whenever shares are debited from your Demat account.
These charges are not imposed by brokers alone. They are shared between:

• The Depository (CDSL for most Zerodha users)
• The Depository Participant (DP), which in this case is Zerodha

CDSL manages the electronic storage of your stocks, while Zerodha acts as the intermediary. Whenever you sell shares or move them out of your Demat account, a debit entry occurs. The DP charges cover the cost of settlement, backend infrastructure, and compliance systems required to process this transfer.

These charges are mandatory across all brokers. Zerodha simply passes them on at the standard rate.

DP charges apply only after you start selling from your Demat account. Learn the complete Zerodha Demat account opening process step by step.

When Do DP Charges Apply in Zerodha?

DP charges apply only during debit transactions from your Demat account. In simple terms, you pay DP charges every time you sell shares on a delivery basis.

Here is when DP charges in Zerodha do apply:

1. Delivery Sell Trades: Any share you sell after holding it overnight triggers DP charges because shares leave your Demat account.
    
2. Off-market transfers/E-DIS authorisations: Moving shares to another Demat account or broker also attracts DP charges.

DP charges do NOT apply during:

• Intraday trades (MIS, regular square-off): Since shares are bought and sold within the same day, there is no Demat movement.
   
• Futures and Options (F&O): These settled instruments do not involve Demat holdings.
   
• Mutual fund purchases/redemptions (in non-Demat route): Zerodha processes most mutual funds outside the Demat ecosystem, so no DP fee is involved.

Converting intraday trades to delivery can trigger DP charges. Learn how convert position in Zerodha before settlement.

How Much Are DP Charges in Zerodha

Zerodha charges DP fees based on the CDSL structure. The amount depends on the primary account holder’s gender, a rule directly set by the depository pricing slab.

Current DP Charges in Zerodha:

Account Type	DP Charge	GST	Total Payable
Male Account Holder	₹13.00	18%	₹15.34 per scrip per day
Female Account Holder	₹12.75	18%	₹15.05 per scrip per day

Knowing DP charges per scrip helps, but total costs matter more; Estimate exact delivery, intraday, and F&O charges before placing your trade by using the Zerodha brokerage calculator.

Important facts:

• This charge applies per scrip per day, not per share.
  Whether you sell 10 shares or 1000 shares of the same stock in a day, DP charges remain the same.
   
• If you sell the same scrip multiple times on the same day, you still pay DP charges only once.
   
• If you sell different scrips, DP charges apply separately for each.

These rules make DP charges predictable and easy to calculate if you know the structure.

How DP Charges Are Displayed in Zerodha

A common confusion among users is:
“Why are DP charges not shown in my contract note?”

The answer is: DP charges are not exchange-levied charges, so they do not appear in the contract note (which only lists exchange, clearing, and brokerage-related fees).

Instead, DP charges appear in:

• Funds Statement (Ledger)
• Backoffice report
• Daily ledger email

Look for entries labelled:

• CDSL DP Charges
• DP Charges – Debit

Since they show up a day after the trade, many users mistake them for hidden fees. In reality, they are standard CDSL charges.

Examples of DP Charges

Real examples make the structure clearer. Below are common scenarios:

Example 1: Selling one scrip once

• Sell TCS on Monday (any quantity)
• Primary holder: Male
• DP Charge: ₹13 + GST = ₹15.34

Example 2: Selling the same scrip multiple times in a day

• Sell HDFC Bank at 10:00 AM
• Sell again at 2:00 PM
• Both are delivery sells

DP Charge = 1 time only → ₹15.34

Example 3: Selling two different stocks on the same day

• Sell Infosys
• Sell Reliance
• Both delivery-based

DP charges apply twice:

• ₹15.34 + ₹15.34 = ₹30.68 (male account holder)

Example 4: Female primary holder selling one scrip

• Charge: ₹12.75 + GST = ₹15.05

These examples show that frequent delivery-based selling increases total DP costs, especially for active traders.

What Trades Do NOT Attract DP Charges

DP charges only apply when shares leave your Demat account. Therefore, the following trades do not involve any DP fee:

1. Intraday Trades (MIS, Regular Intraday)

No shares are delivered to or from your Demat account, so there is no debit movement.

2. F&O (Futures & Options)

All futures and most options settle in cash.
Since Demat is not involved, no DP charge applies.

3. Mutual Fund Transactions via Coin (Non-Demat Route)

Zerodha’s Coin platform processes mutual fund units in non-Demat format.
Therefore, buying or redeeming does not trigger DP charges.

4. Pledging of Shares

Pledging for margin does not require share debit.
No DP fee applies unless the shares are sold during default handling.

Understanding these non-chargeable cases helps traders structure their strategies more cost-efficiently.

F&O trades avoid DP charges entirely because Demat settlement is not involved. Activate Zerodha F&O charges to trade without DP fees.

How to Minimise or Avoid DP Charges

Here are simple, practical ways to reduce or avoid DP charges in Zerodha:

1. Consolidate Orders Per Scrip

If you plan to sell a stock, sell it once per day instead of multiple sell orders.
DP charges remain one-time per scrip per day.

2. Use Intraday (MIS) if Holding Is Not Required

If you aim for short-term price movements, use intraday orders.
No DP charges apply because no Demat movement occurs.

3. Opt for F&O When Appropriate

If trading with leverage or hedging strategies, F&O may be more cost-efficient because it has zero DP charge impact.

4. Hold via Mutual Funds or ETFs if DP Costs Matter

Some investors prefer ETFs or mutual funds because redemptions often have no DP charge.

5. Check Ledger Regularly

Monitoring your ledger weekly ensures no “surprise” debit appears.

These techniques help long-term and short-term investors optimise costs.

GTT orders help plan delivery trades without constant monitoring. Learn how GTT in Zerodha and when DP charges apply on execution.

Why DP Charges Matter Even with Zero Brokerage

Zerodha offers zero brokerage on delivery trades, which attracts many investors. However, DP charges still apply on every delivery sell order, creating a hidden cost perspective for new users.

Example of actual total cost:

• Sell 2 delivery-based stocks
   
• DP Charges = 2 × ₹15.34 = ₹30.68
   
• Add STT, stamp duty, GST, exchange fees
   
• Total cost → often ₹35–₹40, even with zero brokerage

Why this matters:

1. Frequent sellers pay more than anticipated
   Multiple delivery sells per week can add up, reducing net returns.
    
2. Small profit trades may turn negative
   If profit margin is thin, DP charges become a deciding factor.
    
3. Zero brokerage does not mean zero cost
   Delivery trading still carries multiple settlement-level fees.

Zero brokerage often sounds cost-free until settlement charges apply; See a transparent Zerodha review pricing, pros, and limitations in one place.

Conclusion

DP charges in Zerodha are fixed settlement-level fees applicable on every delivery-based sell order. Even though Zerodha offers zero delivery brokerage, DP charges still impact your net trading cost. The fee is applied per scrip per day, not per share, and shows up in your ledger instead of the contract note.

For frequent sellers or active delivery traders, these charges add up quickly. Understanding when DP charges apply, how much they cost, and how to reduce them helps you plan trades more efficiently and improve overall returns. Always check your ledger and consolidate sells when possible to minimise costs.

FAQs

1. What are DP charges in Zerodha?
   DP charges are fees deducted when shares are debited from your Demat account, mainly during delivery sell trades.
    
2. Does buying shares attract DP charges?
   No. Buying does not involve share debit, so no DP charge applies.
    
3. Do intraday trades have DP charges?
   No. Intraday trades are squared off on the same day, so Demat is never involved.
    
4. Are DP charges applicable for each share?
   No. They apply per scrip per day, regardless of the number of shares.
    
5. Why are DP charges not shown in the contract note?
   Because they are not exchange fees. They appear only in the ledger.
    
6. How much are DP charges in Zerodha?
   Around ₹15.34 for male and ₹15.05 for female account holders per scrip per day.
    
7. Are DP charges applicable on ETFs?
   Yes, ETFs are held in Demat form, so selling them attracts DP charges.
    
8. Are mutual funds free from DP charges?
   Yes, most mutual fund redemptions through Zerodha’s Coin platform do not attract DP charges.