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Quick Look at the Brokerage Charges as per SEBI Regulations:

As per SEBI Regulations, every stock-broker, on the basis of his total turnover, is required to pay annual turnover charges, which are to be collected by the stock exchanges. In order to share the benefits of efficiency, NSE has been reducing the transaction charges over a period of time.

A member is required to pay the exchange, transaction charges at the rate of 0.0035% (Rs. 3.5 per Rs. 1 lakh) of the turnover. Trading members are also required to pay securities transaction tax (STT) on all delivery based transaction at the rate of 0.125% (payable by both buyer and seller) and in case of non-delivery transactions at the rate of 0.025% for equities payable by the seller only).

The maximum brokerage chargeable by trading member in respect of trades effected in the securities admitted to dealing on the CM segment of the Exchange is fixed at 2.5% of the contract price, exclusive of statutory levies like, securities transaction tax, SEBI turnover fee, service tax and stamp duty. However, the brokerage charges as low as 0.15% are also observed in the market

Stamp duties are payable as per the rates prescribed by the relevant states. In Maharashtra, for brokers having registered office in Maharashtra, it is charged at @ Re. 1 for every Rs. 10,000 or part thereof (i.e., 0.01 %) of the value of security at the time of purchase/sale as the case may be. However, if the securities are not delivered, it is levied at @ 20 paise for every Rs. 10,000 or part thereof (i.e. 0.002%).

As per the Finance Bill, 2008 Stock Exchanges and Clearing House Services would be charging a service tax on services rendered by them in relation to assisting, regulating or controlling the business of buying, selling or dealing in securities and including services provided in relation to trading, processing, clearing and settlement of transactions in securities, goods and forward contracts w.e.f 16th May, 2008.

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