May I have the input of viewers on this post on stamp duty over-charge?

Hedonist · #1 25th October 2007, 04:15 PM

Hello fellow traders and investors,

I wanted to know if there is any limit a broker may charge as stamp duty on F&O?

For eg. even tho stamp duty is 0.002%, can a broker charge lets say 1% or .1% as stamp duty by framing it as "Stamp duty and other charges?"

I feel all miscellaneous charges would be covered by the brokerage charges, and so this should be illegal.

Pls may I request the input of any of the viewers?

Thanks.

aca_trader · #2 25th October 2007, 04:49 PM

Quote:

Originally Posted by Hedonist

Hello fellow traders and investors,

I wanted to know if there is any limit a broker may charge as stamp duty on F&O?

For eg. even tho stamp duty is 0.002%, can a broker charge lets say 1% or .1% as stamp duty by framing it as "Stamp duty and other charges?"

I feel all miscellaneous charges would be covered by the brokerage charges, and so this should be illegal.

Pls may I request the input of any of the viewers?

Thanks.

Stamp Duty Can not be charged at a rate higher than that prescribed by the statute. For other charges, get a clarification from the Broker.

Best Regards,
--Ashish

rajesh.sadhanala · #3 25th October 2007, 05:06 PM

Quote:

Originally Posted by aca_trader

Stamp Duty Can not be charged at a rate higher than that prescribed by the statute. For other charges, get a clarification from the Broker.

Best Regards,
--Ashish

Hi Ashish, Good to see u back in Action. I have one query on the brokerage on options, pls clarify.

200710225214837 10:15:35 5230009 12:37:42 OPTIDX NIFTY 25-OCT-07 5200 PE Sell 100 150.0000 15000.0000 375.0000 46.3500 90.9500

Brokerage is Rs. 375 for 2 lots of Nifty options however when I buy it was only Rs.200. Little confused. Can explain me in detail. Any link will do abt the explanation of options brokerage. Hope to catch up online soon

Regards
Raj

aca_trader · #4 25th October 2007, 05:43 PM

Quote:

Originally Posted by rajesh.sadhanala

Hi Ashish, Good to see u back in Action. I have one query on the brokerage on options, pls clarify.

200710225214837 10:15:35 5230009 12:37:42 OPTIDX NIFTY 25-OCT-07 5200 PE Sell 100 150.0000 15000.0000 375.0000 46.3500 90.9500

Brokerage is Rs. 375 for 2 lots of Nifty options however when I buy it was only Rs.200. Little confused. Can explain me in detail. Any link will do abt the explanation of options brokerage. Hope to catch up online soon

Regards
Raj

Hi raj!

The difference will be of STT. Check it Out.

Best Regards,
--Ashish

rajesh.sadhanala · #5 25th October 2007, 06:25 PM

Quote:

Originally Posted by aca_trader

Hi raj!

The difference will be of STT. Check it Out.

Best Regards,
--Ashish

I mean the actual brokerage is 200rs for buy Nifty puts and rs375 for sell Nifty puts without considering the STT and other tax.

Raj

bslk · #6 25th October 2007, 06:41 PM

Quote:

Originally Posted by rajesh.sadhanala

I mean the actual brokerage is 200rs for buy Nifty puts and rs375 for sell Nifty puts without considering the STT and other tax.

Raj

200 rs seems to be on a per lot basis i.e 100 per lot

375 seems to be on premium percentage, 2.5 % of 15000 = 375.

Who's your broker? Seems to be charging the max allowed by NSE.

rajesh.sadhanala · #7 25th October 2007, 07:07 PM

Quote:

Originally Posted by bslk

200 rs seems to be on a per lot basis i.e 100 per lot

375 seems to be on premium percentage, 2.5 % of 15000 = 375.

Who's your broker? Seems to be charging the max allowed by NSE.

Yes its quite high. Indiabulls is my brokerage service. I never use to do FNO, so never talked about it. I started Option recently and I find it to be very high.

Do u know what will be the best market rate so I can talk to my broker to ask for the best rate.

Raj

novice1 · #8 25th October 2007, 08:10 PM

Hi Ashish,

What is position on Stamp Duty for non-Maharastra clients with brokers out of Mumbai. I read in ET that non-Maharastrians need not pay stamp duty since the law is specific. Can you please direct me to some urls where I can get clarity on this.

Regards

aca_trader · #9 26th October 2007, 11:10 AM

Quote:

Originally Posted by novice1

Hi Ashish,

What is position on Stamp Duty for non-Maharastra clients with brokers out of Mumbai. I read in ET that non-Maharastrians need not pay stamp duty since the law is specific. Can you please direct me to some urls where I can get clarity on this.

Regards

Stamp Duty is a State Levy. Hence, one needs to check the relevant laws of the state one's broker does the billing from. Rules of that particular state would apply.

Best Regards,
--Ashish