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Apart from Brokerage What Fees I am Charged

With the growing awareness of the significance of supplemental income, investing in the financial market is becoming increasingly popular. 

However, before delving into investments, it is crucial to know the costs associated with investing in order to manage one’s trades more efficiently and to calculate the net gains/losses accurately. When trading or investing in Stock Markets, investors have to pay several other fees and charges besides brokerage fees. 

Let us discuss in detail the different charges you may incur on your investments, apart from brokerage.

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Regulatory and Statutory Charges

A regulatory and statutory charge is a fee or expense imposed by the government or regulatory authorities. 

Typically, these charges are levied in order to comply with legal and regulatory frameworks. 

These charges include:

1. STT (Securities Transaction Tax)

In India, STT is a government-imposed tax on security transactions, such as stocks, derivatives, and equity funds. Both buyers and sellers, calculated as a percentage of the transaction value, pay the tax.

Here are the STT charges imposed on various security transactions:

2. Equity

For intraday transactions

0.025% of the turnover (on sell orders)

For delivery transactions

0.1% of the turnover (on sell and buy orders)

3. Future & Options

For Future transactions

0.0125% of the turnover (on sell orders)

For Options transactions

0.125% of the intrinsic value on options that are bought and exercised

0.0625% on the premium (on sell orders)

4. Stamp Duty

Stamp duty is a tax charged on various legal documents, including stock transfers and property transactions. The rate varies depending on the jurisdiction and nature of the transaction.

Here are the stamp duty charges imposed on various security transactions:

5. Equity

For intraday transactions

0.003% of the turnover (on buying orders)

For delivery transactions

0.015% of the turnover (on buy orders)

6. Future & Options

For Future transactions - 

0.002% of the turnover (on buy orders)

For Options transactions - 

0.003% of the turnover (on buy orders)

7. Exchange Transaction Charges

Exchange transaction charges are fees imposed by stock exchanges for executing trades. 

These charges cover the cost of maintaining and operating the exchange platform and are typically calculated as a percentage of the trade value.

Here are the exchange transaction charges imposed on various security transactions:

8. Equity

 

NSE

BSE

For intraday transactions

0.00325% of the turnover (on buy and sell orders)

0.00325% of the turnover (on buy and sell orders)

For delivery transactions

0.00325% of the turnover (on buy and sell orders)

0.00325% of the turnover (on buy and sell orders)

9. Future & Options

 

For Future transactions

For Options transactions

NSE

0.0019% of the turnover (on buy and sell orders)

0.05% on the premium (on buy and sell orders)

10. SEBI Turnover Charge

For every transaction executed on a Stock Exchange, the Securities and Exchange Board of India (SEBI) charges a Turnover Charge.

The fee is calculated as a percentage of the traded value, and SEBI uses it to fund its regulatory activities.

SEBI Charges imposed on various security transactions are:

11. Equity

For intraday transactions

0.0001% of the turnover/₹ 10 per crore (on buy and sell orders)

For delivery transactions

0.0001% of the turnover/₹10 per crore (on buy and sell orders)

12. Future & Options

For Future transactions

0.0001% of the turnover/₹10 per crore (on buy and sell orders)

For Options transactions

0.0001% of the turnover/₹10 per crore (on buy and sell orders)

13. DP Charges

DP (Depository Participant) fees are imposed by depository participants for managing and maintaining dematerialised securities. 

These fees reflect the costs of holding securities electronically, such as account maintenance and transactions.

DP charges imposed on various security transactions are:

14. Equity 

For intraday transactions

₹0

For delivery transactions

₹13.6 per company

15. Future & Options

For Future transactions

₹0

For Options transactions

₹0

Penalties-

Charges for automatic square-off

For every open position, ₹50 is charged. 

Auction Penalty

If a stock cannot be delivered, the exchange may impose a penalty.

Negative Demag account balance

It depends on the platforms used for trading in the stock market. 

Other Charges

1. GST

18% GST applies to all charges, i.e., the brokerage, DP charges, Exchange transaction charges, SEBI turnover charges, and Auto square-off charges.

2. Physical delivery of derivatives

A fee of 0.05% is charged for the physical delivery of derivatives.

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