Most investors in India buy and sell shares through registered stockbrokers.
While brokerage charges are widely discussed, there are several other charges applicable when trading in shares that investors must be aware of.
These stock market charges in India are levied by stock exchanges, SEBI, clearing corporations, and the Government of India. They apply to transactions in equity shares, intraday trading, futures, and options.
Understanding these charges helps investors estimate the actual cost of buying and selling shares and avoid confusion while reviewing contract notes.
Check the Contract Note for Trading Charges
Whenever you buy or sell shares, a contract note is issued by your broker.
This document contains the complete breakup of:
- Share quantity and price
- Brokerage charges
- Statutory charges and taxes
- Net amount payable or receivable
Investors should always review the contract note to ensure accuracy in charges applied.
Charges Applicable When Buying and Selling Shares
In addition to brokerage, the following stock market transaction charges may apply:
- Securities Transaction Tax (STT)
- Exchange Transaction Charges
- Stamp Duty
- SEBI Turnover Fees
- Goods and Services Tax (GST)
- Depository Participant (DP) Charges
Overview of Stock Market Charges in India
| Particulars | Equity Delivery | Intraday Trading | Futures Trading | Options Trading |
| Brokerage* | As per broker tariff | As per broker tariff | As per broker tariff | As per broker tariff |
| GST (18%) | On brokerage & exchange charges | On brokerage & exchange charges | On brokerage & exchange charges | On brokerage & exchange charges |
| Securities Transaction Tax (STT) | On buy & sell value | On sell value | On sell value | On option premium |
| Exchange Charges | As per NSE/BSE | As per NSE/BSE | As per NSE/BSE | As per NSE/BSE |
| Stamp Duty | On buy value | On buy value | On buy value | On buy premium |
| SEBI Turnover Fees | Nominal | Nominal | Nominal | Nominal |
| DP Charges | On sell transactions | Not applicable | Not applicable | Not applicable |
* Brokerage charges vary across brokers. Please refer to your broker’s tariff sheet.
Miscellaneous Trading Charges (If Applicable)
- Physical or Digital Contract Note Charges
- Delivery Instruction Slip (DIS) Charges
- Payment Failure or Cheque Bounce Charges
- Interest on Delayed Payments
These charges may differ based on broker policies and account terms.
Example: Equity Delivery Transaction Cost Calculation
Scenario:
Purchase of 100 equity shares at ₹1,000 per share
Total Transaction Value:
₹1,00,000
Applicable Charges Include:
- Brokerage (as per broker tariff)
- GST @ 18% on brokerage & exchange charges
- Securities Transaction Tax (STT)
- Stamp Duty on buy value
- Exchange transaction charges
- SEBI turnover fees
Total Cost:
Higher than brokerage alone due to statutory and regulatory charges.
Why Understanding Trading Charges Is Important
- Helps investors calculate net returns on equity investments
- Reduces surprises in trading statements
- Encourages cost-efficient investing
- Improves awareness of share market charges in India
Key Takeaways for Investors
- Brokerage is only one part of the total trading cost
- Statutory charges apply uniformly across all brokers
- Contract notes provide full transparency of charges
- Awareness of costs supports better investment decisions
You can find more information on some of the terminologies related to Demat at http://www.sebi.gov.in/faq/faqdemat.html
Disclaimer
This content is for educational purposes only. Charges may change as per regulatory norms. Investors should verify details from official broker documents. Mutual fund investments are subject to market risks.
