Help Center
What are the regulatory charges I will pay apart from brokerage?
You will pay government and regulatory charges in addition to brokerage for your stock market transactions. Here are the some of these charges:
- Securities Transaction Tax (STT): A direct tax levied by the Government of India on trades executed on the stock exchange. It is the highest regulatory charge you pay.
- Exchange Transaction Charges (NSE / BSE): Fees collected directly by the stock exchanges (National Stock Exchange or Bombay Stock Exchange) for providing the trading platform.
- SEBI Turnover Fees: A small regulatory fee collected by the Securities and Exchange Board of India (SEBI) to regulate the stock markets.
- Stamp Duty: A tax levied by the Government of India under the Indian Stamp Act for transferring financial instruments. It is charged only when you buy any instruments like equity and F&O.
- Investor Protection Fund Trust (IPFT): A nominal fee collected by the exchanges to maintain a fund that compensates investors if a broker or clearing member defaults.
Here is the breakdown of the charges:
| Charge | Equity delivery | Equity intraday | F&O – futures | F&O – options |
| Securities Transaction Tax (STT) | 0.1% on turnover | 0.025% on sell turnover | 0.05% on the sell side | 0.15% on the sell side (on premium). 0.15% of the intrinsic value on options that are bought and exercised |
| Exchange Transaction Charges (NSE) | 0.0030699% of turnover | 0.0030699% of turnover | 0.0018299% of turnover | 0.0355299% (on premium) |
| Exchange Transaction Charges (BSE) | 0.00375% of turnover | 0.00375% of turnover | 0 | Sensex and Bankex Options (All Expiries) – 0.0325% (on premium). All other options – 0.005% (on premium) |
| SEBI Turnover Fees | 0.0001% of turnover | 0.0001% of turnover | 0.0001% of turnover | 0.0001% of turnover |
| Stamp Duty | 0.015% on buy turnover | 0.003% on buy turnover | 0.002% on the buy side | 0.003% on the buy side |
| Investor Protection Fund Trust (IPFT) | 0.0000001% of turnover | 0.0000001% of turnover | 0.0000001% of turnover | 0.0000001% of turnover |
Note: In stock market trading, turnover is the total monetary value of all executed transactions or the absolute sum of profits and losses during a specific period.
Was this helpful?
