Nithin Kamath Highlights Impact of Depository Participant Charges on Stock Trading Costs

Zerodha founder Nithin Kamath has highlighted the often-overlooked Depository Participant (DP) charges investors incur when selling shares. These fees cover the settlement process and vary by broker, with some charging a flat fee and others a percentage of the transaction value. Kamath warned that high or frequent DP charges can offset low brokerage rates, especially for active traders selling the same stock multiple times daily. Zerodha applies a flat DP fee once per stock per day, including GST.