HDFC Securities charging excessive brokerage by bending laws

magnet

Active Member
#1
I have bought this shares of some company name Tatia global venture for 3.23 . 436 shares bought.
With brokerage and all per share cost was 3.30 rupees.

As the stock went below 2.5 rs hdfc freeze any buy/sell for me in this stock.

Now when it again went above 2.5 levels for continuous 15 days they reallowed trading.

Today i placed an order for sell of all shares at 3.85.Also since now it being under T 2 T segment i hardly get buyers.SOme dumbo bought just a single share and i saw 100 share bid at 3.60.I modified my trade price and 100 shares also got sold.Than there was no bid so i again modified my price to 3.85.

After the day ended i saw total 103 shares got sold.

I was somewhat happy that atleast i wont make any loss including dp charge on my trade.

Since hdfc charges according to this structure

HDFC Securities

But my joy was short lived.

The contract note had trade worth rupee 372.I thought with brokerage and other charges somewhere 360 would be the final total.

But hdfc charge brokerage of 25 rupees.And other charges bring that down to 28 rupees.
So 342 for my trade.Plus another 28 rupees will deduct next month.

So for 340 rupees price ill get 310 rupees in short 10% loss almost.

Even at 2.5% per trade maximum brokerage charge would had been 10 rupees.And with hdfc structure it should have been 5-6 rupees.

Because 103*0.05= 5.15 rupees.

I have raised a flag with them.I just need second thought.
 

SexyTrader

Well-Known Member
#2
Re: Did HDFC charged me wrong?

I have bought this shares of some company name Tatia global venture for 3.23 . 436 shares bought.
With brokerage and all per share cost was 3.30 rupees.

As the stock went below 2.5 rs hdfc freeze any buy/sell for me in this stock.

Now when it again went above 2.5 levels for continuous 15 days they reallowed trading.

Today i placed an order for sell of all shares at 3.85.Also since now it being under T 2 T segment i hardly get buyers.SOme dumbo bought just a single share and i saw 100 share bid at 3.60.I modified my trade price and 100 shares also got sold.Than there was no bid so i again modified my price to 3.85.

After the day ended i saw total 103 shares got sold.

I was somewhat happy that atleast i wont make any loss including dp charge on my trade.

Since hdfc charges according to this structure

HDFC Securities

But my joy was short lived.

The contract note had trade worth rupee 372.I thought with brokerage and other charges somewhere 360 would be the final total.

But hdfc charge brokerage of 25 rupees.And other charges bring that down to 28 rupees.
So 342 for my trade.Plus another 28 rupees will deduct next month.

So for 340 rupees price ill get 310 rupees in short 10% loss almost.

Even at 2.5% per trade maximum brokerage charge would had been 10 rupees.And with hdfc structure it should have been 5-6 rupees.

Because 103*0.05= 5.15 rupees.

I have raised a flag with them.I just need second thought.
HDFC's minimum brokerage is 25 rupees! Thats the minimum they will charge for sure.

Thats coz they expect you to do trades for a minimum amount of 1 lakh....hence their minimum brokerage is kept as 25, even if you do less than 1 lakh :p
 

yusi

Well-Known Member
#3
Re: Did HDFC charged me wrong?

The post is slightly confusing to read.

But I guess the basic matter is that HDFC has a minimum charge per order. This charge is Rs 25.

For a brokerage of 0.5%, a delivery based buy / sell below Rs 5000 (I forget the exact values), would be lower that the minimum brokerage, and a flat Rs 25 applies.

It will be there somewhere in the fine print of the brokerage charges that they would have given to you.
 

magnet

Active Member
#4
Re: Did HDFC charged me wrong?

Brothers.

I agree with your point the minimum charge of 25 allows.

But also there is ceiling that it shouldn't cost 2.5% of trade value.

If i go according to rules which you stated for a single share sold of 3 rupees i should pay 25 rupees brokerage?

For penny stocks(trading below 10 levels) rule is 0.05 per share traded and ceiling rate also doesnt apply.

They charged me 0.25 per share.Whereas it shouldnt have crossed 0.05 per share.
I have shared the link of hdfc brokerage.

They didn't replied my mail yet else within a day they reply .

Also i have bought shares worth rupees 900 this week and there also brokerage didnot even touched 25 rupees as ceiling rate of 2.5% applied .So 23 rupees.

And here for a trade of below 400 i pay 25 rupees.
 

yusi

Well-Known Member
#5
Re: Did HDFC charged me wrong?

You have a point. Guess the link you refer to is :
http://www.hdfcsec.com/FAQ.aspx?docid=201008101155287343750

It states that the minimum will be 0.05. According to SEBI, the maximum is 0.25 brokerage for shares below Rs 10.

1. As per circular no NSE/ CMT/ 001 dated 28/10/1994, the maximum brokerage chargeable by a Trading Member in relation to trades effected in the securities admitted to dealings on the Capital Market segment of the Exchange shall be 2.5 % of the contract price exclusive of statutory levies. It is hereby clarified that where the sale / purchase value of a share is Rs.10/- or less, a maximum brokerage of 25 paise per share may be collected.
So, 103 shares * 0.25 = Rs 25.75 maximum. In your case HDFC is within the rules (but maybe not in spirit). Please keep us informed about HDFC's reply.

Let me give you an alternate scenario for R K Global, where they charge Rs 9 per order flat. There was a sell order of Eveready for 200 @ 29.xx. Only 1 share got sold. I think they charged me Rs 9. Let me check if they charged me 25+% brokerage.
 

magnet

Active Member
#6
Re: Did HDFC charged me wrong?

If thats the case than it looks right.But nowhere on hdfc site its mentioned except contract note that it shouldn't surpass 2.5% of value.
 
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magnet

Active Member
#7
Re: Did HDFC charged me wrong?

Now this is turning interesting.

Yes I raised my concern on hdfcsec customer care and this is their reply


:
Dear Ms. XYZ

Thank you for writing to us.

Please note we have verified the trade you are referring below and would like to inform that your have been charged the minimum brokerage of Rs 25.00.

The copy of our brokerage structure is attached herewith for your reference.

Assuring best of our services at all times.

Sincerely

Ritvij Modak
Customer Care Desk
HDFC Securities Ltd.
Contact : 39019400 (prefix local area code)
Email : [email protected]

This is really insane.
They wanted me to pay 25 rs per trade even if i sell single stock of say 1 rupees .

I am again raising a flag with serious message of closing my account and raising matter with sebi.
 
#8
Sorry, but I really don't see the issue here.
Its clearly mentioned in their site as well as the trading tariff sheet during account opening that brokerage is a minimum of Rs. 25.

Not associated with HDFC in anyway except that I'm having an account there. And planning to closing it soon since I can't generate profit with this heavy brokerage.

So high brokerage? Yes. Cheating? I don't think so since they mention it clearly upfront.
 
#9
This structure of brokerage is applied by most broking houses.
HDFC Sec is among the recommended broking house. Suggest you rethink on your decision to close acc.
 

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