In this post, we will see what are the different charges levied when we buy or sell any stock.
There are 2 types of transactions in the stock market.
1. Intraday Transaction: Under this, you buy and sell a stock same day and you do not carry over any overnight positions/stocks.
The applicable charges are mentioned below:
a) Brokerage: It depends upon your broker, discount brokers have a maximum cap of 20rs per order.
b) Exchange Transaction Charges: NSE (0.00325%), BSE (Rs 1.5, but can vary depending on stock)
c) GST: 18% of (brokerage + Exchange transaction charge)
d) STT (Security Transaction Tax): 0.025% of total purchased share amount and only applicable on the sell side.
e) SEBI turnover fees: ₹15 / crore of transaction
f) Stamp duty: It depends on state to state. For example, in Telangana, it is 0.01% – max ₹ 100/day.
2. Delivery based transaction: This is the usual transaction carried by investors and positional traders. You buy a stock and keep it for several days/months/years before selling it.
Most of the charges remain the same as Intraday.
a) Brokerage: It depends upon your broker, discount brokers do not charge any brokerage for delivery of stocks.
b) Exchange Transaction Charges: NSE (0.00325%), BSE (Rs 1.5, but can vary depending on stock).
c) GST: 18% of (brokerage + Exchange transaction charge)
d) STT: 0.025% of total purchased share amount and only applicable on the sell side.
e) SEBI turnover fees: ₹15 / crore of transaction
f) Stamp duty: It depends on state to state. For example, in Telangana, it is 0.01% – max ₹ 100/day.
g) CDSL/ NSDL charges: This charge is applicable to the sell side and it is charge varies from broker to broker. Zerodha charges around Rs 15.50 per debit and it doesn’t depend on the number of shares you sold. Charges are debited from your ledger as it is not part of your contract note. Note that for BTST this charge is not applicable.
Read: Understand the PE ratio for valuation analysis.