If you invest in shares using a platform like Groww, you may see a fee called DP Charges. But what does “DP” mean — and why are you paying this charge?
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DP stands for Depository Participant. In India, shares of companies are held in a digital form under a Demat account. (Wikipedia)
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A depository participant is basically the intermediary — like Groww — which maintains your Demat account with the central depositories (like NSDL or CDSL), and enables holding and transferring of securities. (ICICI Direct)
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When you sell shares — meaning the shares are “debited” (removed) from your Demat account — the depository (via the DP) charges a fee. That fee is called “DP Charges.” (Groww)
In short: DP Charges are fees you pay when shares are debited from your Demat account during a sale transaction.
DP Charges on Groww — What They Charge You
On Groww, DP Charges consist of two parts:
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Depository’s fee (the “base” DP fee)
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Groww’s fee (as your broker / depository participant) (Groww)
Here’s how it works as per Groww’s latest publicly available pricing: (Groww)
| Scenario | Charges (before GST) |
|---|---|
| Sell transaction with debit (sale) value ₹100 or more | Depository fee + Groww fee → ₹20.00 for male investors (₹3.50 + ₹16.50) ₹19.75 for female investors (₹3.25 + ₹16.50) (Groww) |
| Sell transaction with debit (sale) value below ₹100 | Groww waives its fee. You pay only the depository fee: ₹3.50 (male) or ₹3.25 (female) (Groww) |
Important things to note:
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These charges apply every time you sell shares. (Groww)
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The charges are per sell transaction, not per share. So if you sell 10 shares or 1000 shares in one order — the DP charge remains the same (flat). (Groww)
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But if you sell shares of different companies (or the same company in separate orders) — each order triggers separate DP charges. (Groww)
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On top of DP charges, other charges also apply when you trade — such as brokerage, taxes, exchange fees, and statutory/regulatory charges. (Groww)
Why DP Charges Exist — What’s the Logic Behind Them
To understand why DP charges exist, you need to know what a depository and a depository participant do.
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When you own shares, they are not kept physically — they are stored electronically in a Demat account, maintained by a depository (NSDL or CDSL). (Wikipedia)
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The depository offers infrastructure and services like updating records, transferring securities, crediting/debiting holdings when you buy or sell — and these come with overhead costs (technology, record‑keeping, regulation, compliance). (ICICI Direct)
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The “DP” — your broker — acts as the bridge between you and the depository. When you sell shares, the DP initiates debit instructions with the depository. For this service, both the depository and DP charge a fee. (ICICI Direct)
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Because these are flat/fixed per transaction charges (not dependent on number of shares), they don’t increase if you sell many shares — which makes them easier to collect and predictable to apply. (ICICI Direct)
Thus, DP Charges are basically “transaction fees” for the operational cost of debiting shares from electronic holdings when you sell them.
How DP Charges Affect Your Profit & What to Keep in Mind
Understanding DP Charges helps you manage your overall cost of investing — and avoid nasty surprises. Here are some practical takeaways:
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Frequent small trades — If you regularly sell small amounts (especially < ₹100) or many separate orders — DP Charges (even ₹20 per sale) can eat into your profit significantly.
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Batch your sell orders — Since DP Charges are per order, if you plan to sell multiple stocks anyway, try to combine them in one order (if possible) rather than multiple small orders. This saves on repeated DP Fees.
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Be aware of total cost structure — DP Charges are only one part: there are also brokerage, exchange/transaction charges, taxes like STT, regulatory fees, GST etc. These together determine your net gain or cost. (Groww)
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For long‑term investors (buy & hold) — DP charges don’t matter until you sell; so DP charges are not a recurring cost like AMC (annual maintenance charges) — which is good if you hold for long. Indeed, Groww offers ₹0 account maintenance charges (AMC). (Groww)
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Check tax and other charges — In addition to DP and brokerage, don’t forget about tax (like STT), regulatory fees, and GST on charges (except government taxes). (Groww)
So DP Charges may seem small per transaction — but over many trades, or many small-value trades, they add up — so good to plan accordingly.
Recent Changes and What’s New (2025 Update)
Charge structures evolve. Here’s an important update from 2025 regarding DP Charges and other fees on Groww:
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As per a notice shared by Groww, from 21 June 2025 onwards, the minimum brokerage (for delivery trades) would increase — and DP charges restructure: Instead of old DP‑fee methods (earlier per day per stock/ISIN or sometimes covered by Groww), now DP charges are charged per sell transaction. (Business Standard)
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The updated DP charge per sell transaction is ₹20 (before GST). (Business Standard)
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This means that if you do multiple sell orders (even on same day) or split your holdings into multiple orders, you’ll pay DP charge each time. So cost for frequent traders might go up. (Business Standard)
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Groww says DP charges are mandatory on every sale transaction (i.e. whenever shares are debited). (Business Standard)
This change underscores why it’s especially important now for investors to plan trades carefully.
DP Charges vs Other Charges — What Else You Pay
When you buy or sell shares on Groww (or any similar broker), DP Charges are only one component of the total cost. Here’s a quick breakdown of other common charges and where DP charges fit:
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Brokerage — This is Groww’s fee for processing your trade. As per current pricing, for delivery trades, it is lower of ₹20 or 0.1% of the trade value — with a minimum ₹5. (Groww)
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Depository / DP Charges — As discussed: charged on sell side, per sell transaction (₹20 before GST for ≥ ₹100 sale value, or just depository fee for small value). (Groww)
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Regulatory & Exchange Charges — Stock exchanges (like NSE, BSE) charge small fees for using their platform; also there are regulatory fees e.g. from SEBI (turnover fees), exchange transaction charges, etc. (Groww)
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Taxes — Like Securities Transaction Tax (STT), Stamp Duty (on buy/sell depending on norms), etc. (Groww)
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GST — Goods & Services Tax (18%) is applied over brokerage, DP charges, exchange transaction charges, and other service charges. (Groww)
Because of all these charges combined, the actual “cost of trading” becomes more than just brokerage or DP fees; so smart investors should always calculate net profit after all charges + taxes — not just gross difference in buy/sell price.
Who Should Care Most — When DP Charges Matter
DP Charges matter especially for certain kinds of investors and trades — you should pay extra attention if you fall under these categories:
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Frequent traders / active investors — If you buy and sell often (short‑term trading, swing trades, small trades), multiple DP charges will accumulate quickly.
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Small-value trades — For low-value sales, the fixed fee (₹20) may eat a large % of your profit. That’s inefficient, especially if profit margins are thin.
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Split orders / multiple transactions — If you break your sell orders into multiple small ones (e.g. selling 100 shares now and 50 later), you get charged multiple times. So order consolidation helps.
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Long-term investors (buy & hold) — Here DP charges are less relevant until you eventually sell. Since there is no AMC (annual maintenance charge) on Groww’s Demat account, long-term holders benefit from low holding cost. (indiasharemarket.in)
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Budget-conscious investors — If you invest small amounts often, or trade occasionally, it’s important to understand total cost (brokerage + DP + taxes) to ensure you still profit.
In short — if you trade rarely and hold stocks for long, DP charges may not bother you much. But for frequent or small trades, they can significantly reduce net returns — so always factor them in when planning.
Tips to Minimise DP Charges and Trading Costs
Here are some practical tips to reduce the impact of DP Charges and overall cost when using Groww (or similar platforms):
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Combine sell orders — Sell all stocks (or as many as you wish) in a single order instead of multiple small orders. Since DP charge is per order, this reduces total fees.
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Avoid frequent small sells — If profit is small or trade value is low, maybe wait until you accumulate a larger quantity/value before selling.
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Hold long-term when possible — Long-term investing avoids repeated DP charges; since there’s no Demat AMC on Groww, holding does not cost you recurring fees.
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Calculate net profit (after all charges & taxes) — Always subtract brokerage + DP charges + exchange/regulatory charges + GST + STT/Stamp duty (if applicable) — this gives realistic net return.
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Compare brokers — Different brokers have different fee structures. If you trade a lot, choose a broker whose combined fees (brokerage + DP + other charges) suit your trading frequency and volume.
Conclusion — DP Charges are Real Cost, Don’t Ignore Them
DP charges may look small — ₹3.50 here, ₹20 there — but they are a real cost of trading when you hold shares in a Demat account and sell them. Especially on a platform like Groww, where the charge is flat per sell transaction, investors making multiple or frequent trades must carefully plan to avoid wiping out profits.
If you are a long‑term investor with a “buy and hold” strategy, the impact of DP charges becomes minimal (because you pay them only once when you sell, and there is no annual maintenance charge). But for traders — or those doing small trades frequently — DP charges can significantly affect your bottom line.
Therefore, always check the total cost (brokerage + DP + taxes + other charges) before trading and try to optimize your orders accordingly.