STT is a tax levied on the purchase and sale of securities such as stocks, equity-oriented mutual funds, and options contracts. The rates vary depending on the type of transaction.
Brokerage Charges
Brokerage charges are the fees charged by stockbrokers for facilitating the buying and selling of securities on your behalf. It is usually a percentage of the transaction value or a fixed amount per trade.
Clearing Charges
Clearing charges are levied by the clearing corporation or clearinghouse for clearing and settling trades executed on stock exchanges. These charges cover the cost of ensuring smooth settlement of transactions.
Securities and Exchange Board of India (SEBI) Turnover Fees
SEBI turnover fees are collected by stock exchanges on behalf of SEBI. It is a small percentage of the traded turnover and is used to fund SEBI's regulatory activities.
Goods and Services Tax (GST)
GST is applicable on the brokerage charges and other transaction charges. It is calculated as a percentage of the total charges.
Stamp Duty
Stamp duty is levied on the transfer of securities. The rate of stamp duty varies across different states in India and is based on the value of the transaction.
Depository Participant (DP) Charges
DP charges are imposed by the depository participants for the maintenance of demat accounts. These charges cover services such as account opening, account maintenance, and transaction statements.
Exchange Transaction Charges
Exchange transaction charges are imposed by the stock exchanges for executing trades. These charges vary based on the segment (equity, derivatives, commodities) and the value of the transaction.
Regulatory Charges
Regulatory charges are imposed by the exchanges for regulatory compliance. These charges contribute to the monitoring and surveillance activities carried out by the exchanges.