DP Charges

Depository Charges, often referred to as DP charges, are fees imposed by depositories for handling equity share transactions in your Demat account. These services include:

• Facilitating the transfer of shares when you sell them.
• Safekeeping of your securities.
• Other related services.

Contract Note

A contract note is a legal document provided by your broker that includes:

• Details of Trades: Lists all the trades executed on stock exchanges like NSE, BSE, or MCX.
• Trading-Related Costs: Includes brokerage, Securities Transaction Tax (STT), Commodities Transaction Tax (CTT), GST, and other transaction-related charges.

DP Charges Are Not in the Contract Note due to: 

1. Different Entities:
• Trading Costs: The contract note reflects costs associated directly with trading activities performed by your broker.
• DP Charges: These are incurred due to services provided by a distinct entity, the depository, which handles your Demat account.
2. Separate Representation:
• Contract Note: Summarises all costs related to the actual execution of trades on the stock exchanges.
• Ledger Entry: DP charges are represented separately in your account ledger as they are post-trade activities handled by the depository. This means you will see DP charges as a specific line item in your ledger rather than in the contract note.

Example:

• Contract Note: If you buy 100 shares of XYZ, the contract note will detail the purchase, including brokerage, STT, GST, etc.
• Ledger Entry: When you later sell these shares, the DP charges for the sale will appear in your ledger, not on the original contract note for the purchase or sale.

Understanding this separation helps clarify where and how different charges related to your investments are documented.