New Delhi, Feb. 23 -- Online brokerage firm Zerodha's Chief Executive Officer (CEO), Nithin Kamath, in his recent social media post on platform X, explained the depository participant (DP) charges that companies impose on stock market investors when they sell their holdings.

Nithin Kamath said that every time an investor or trader sells their holdings, the Depository Participant (DP) is the one which clears the settlement of the trades, from debiting the shares from the demat account to delivering them to a clearing corporation.

"When you sell stocks, your shares are debited from your demat account and delivered to the clearing corporation for settlement. This debit is what attracts a DP (Depository Participant) charge," said Kamath in ...