Market performance in the final week of February 2026 reflects a growing focus on the structural costs of trading. While indices like the **SENSEX** trade near **82,815** and the **NIFTY 50** hovers around **25,571**, the actual net returns for retail investors are increasingly dictated by backend fees rather than just market movements. Depository Participant (DP) charges have emerged as a critical variable in this cost equation. These fees are triggered every time an investor sells shares from a demat account. Unlike brokerage fees, which are often marketed as "zero" or "flat," DP charges are frequently tucked away in the account ledger rather than the contract note. Cost Structures and Variations The financial impact depends heavily on whether a broker uses a flat fee or a percentage-based model. In the current market, major discount players typically charge a flat fee. For example, Zerodha applies a charge of **₹13.50** plus **18% GST** per transaction. Other platforms like Groww and IIFL range between **₹20.00** and **₹25.00** plus taxes. The risk for larger traders lies in percentage-based levies. Some firms charge a rate of **0.04%** on the sell value. On a transaction of **₹10,00,000**, this translates to a **₹400** DP fee. This is significantly higher than the flat rates used by competitors, effectively eroding the advantage of low-cost brokerage. Frequency and Cumulative Impact The method of application further differentiates the cost burden for active participants. While some brokers apply the fee once per stock per day, others levy it on every individual sell transaction. For instance, selling shares of a single company four times in one session could result in four separate charges under specific fee structures. Investors utilizing the Margin Trading Facility (MTF) face additional layers of complexity. While MTF interest rates are a primary focus, the associated pledge and unpledge fees—often ranging from **₹15** to **₹25** per scrip—can raise the breakeven point of a trade. Regulatory and Institutional Context These charges are a combination of fees from the depositories—**CDSL** or **NSDL**—and the facilitation fee added by the broker. As of February 2026, the base depository fee is generally between **₹3.50** and **₹5.50**. Brokers act as intermediaries, bearing the settlement risk and operational costs of share delivery. However, the rise in retail participation and leveraged products has magnified the visibility of these small, recurring costs. For the modern investor, the total cost of a trade is no longer just the headline brokerage. It is the sum of the transaction fee, the **18% GST**, and the specific DP tariff of the platform. Understanding these nuances is essential for protecting long-term portfolio returns in a volatile market environment.