There is a custody fee that is imposed by the 2 depositories, viz. NSDL and CDSL on a per ISIN basis. But SEBI has now clarified that the custody fee shall not be imposed on the end client. Already, in most of the cases the custody fee is directly paid by the demat company to the depository and hence this charge is normally not applicable to customers. Now SEBI has recently clarified that custodial fee is not supposed to be charged to clients and must be borne by the company only. This removes the confusion over custodial fees.
Then there is a per-transaction fee which is imposed each time your demat account is debited or credited. In the past, both debt and credit transactions to the demat account attracted transaction charges. Then it was left to the DP’s discretion to charge or not to charge for the credits to the DP account. Normally, when you buy shares the demat account is credited and when you sell shares then the demat account is debited. The DPs used to charge the customers for credits and debits to the demat account, but nowadays most of the DPs are only charging for the debits to the account. Now SEBI has clarified that DPs cannot charge customers for any credit to the demat account. However, debits to the demat account will continue to be charged a transaction fee o a per share basis.