Cheated on brokarage charges

KIV

New Member
#21
Excellent work dhruvs,good info! :thumb:
Not excellant work...That is interpretted wrongly and brokers are mis using that sentence.If the total tade value is less than Rs.10 then they can charge a minimum of 25 paisa per share...When the total trade value is exceeded by Rs.10 then max 2.5%.

Why the first rule is ...bcoz if it less than Rs.10 ,suppose Rs.2(not single share totatal trade) then brokerage will be 2.5 percentage of Rs.2 ie less than 1 paisa ...which nobody can calculate so it is set as 25 paisa min.ie 2.5% of Rs.10...Hope every one understood.
 

KIV

New Member
#22
Not excellant work...That is interpretted wrongly and brokers are mis using that sentence.If the total tade value is less than Rs.10 then they can charge a minimum of 25 paisa per share...When the total trade value is exceeded by Rs.10 then max 2.5%.

Why the first rule is ...bcoz if it less than Rs.10 ,suppose Rs.2(not single share totatal trade) then brokerage will be 2.5 percentage of Rs.2 ie less than 1 paisa ...which nobody can calculate so it is set as 25 paisa min.ie 2.5% of Rs.10...Hope every one understood.
 
#23
Appendix A Regulation 14.1
Permits the Brokers to charge Brokerage at Higher of
(i) at Flat Rate (irrespective of Face Value of Share) @ Rs.0.25 per share
or
(ii) @ 2.5% of contract price per share

The above plan of Brokerage is apparently the one in operation since very much prior to 1994.

Now a days Listed Shares are of varying Face Value like Rs.1/-, Rs.2/-, Rs.5/-
Rs.10/-.

Thus the market regulator on the hand allowed the trading to the investors only through their Licensed Broker Member, and then allowed then such a flaxible brokerage limit where they can charge the Brokerage in respect to shares traded at Rs.10/- or below as uto paisa 25 per shares.

The above rate of higher limit of brokerage if applied taking in account the face value of share should work

FV Rs.1/- 25%
FV Rs.2/- 12.5%
FV Rs.5/- 5%
FV Rs.10/- 2.5%

And in case of contract price it varies unto 2500% @ Paisa 25 per share if the shares are traded @ Paisa 0.01, and so on @250% if traded @ Paisa 10.

Flaxibility rested with the Broker is seems to allow the Broker to manimulate the Market in favour of the instutions and individual having the power to negotiate the Brokerage Plan with Broker.

Thus the plan is against restractive / compitative trade practice as is one widly negotiable and against the interest of investores and the maket which claimed to an open free market controlled through the Bodies in the interest of investors protection.

In the recent past ICICI Direct had charged the Brokerage of 12000/- on Purchase of 240000 shares @ Paisa 10 each share for a trade value of 24000/-. The Brokerage was inadition other charges

Shares bought was Cals Refinery Ltd ranging in previous 52 weeks at paisa 08 to 15. Certainly the trends seems to be the same for the next 52 weak.

Thus the sell of shares bought was made impossible unless the investors booked a loss over 100% oh his investment.

Thus in the back ground of investors protection over 100 of its investment is snached in a well deviced manner.

I have brought the issue to the notice of ICICI Direct, SEBI, And the EXCHANGE. ICICI had responded that they had revised their plan in respect to shares trade at Rs.10 or below as since July 2012 and charging the Broker @ Paisa 5 per shares which 1/5th of the limit allowed to them. While the SEBI has passes the issue to the Exchange. And the Exchange instead to looking into policy is insisting to make the claim in prescribed as claim for excess brokerage charged with the amount refund as claimed excess despit the facts the charged amount despit being highly excessive is within limit allowed by them and the persuation is review and revision of policy taking in account the face value of shares.

Let the investors strat demanding the SEBI and EXCHANGE for suitable consideration in the intrest of Market as well as the investors
 

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