Comment on NRI trading on Indian Stock Exchanges

Rajiv commented on 23 Jun 2015, 02:31 PM


Could you please explain why the brokerage per trade for NRI is 200 ( which is 10 x for resident customers) ?

Secondly, in the calculator mentioned, the service tax on brokerage will also increase by approx. Rs. 50.4 [i.e. 14% x (400-40)]. Total service tax will be Rs. 56, instead of 5.6

Lastly, for NRI’s, we have to also pay Bank’s transaction charges ( which for Axis bank PIS is Rs. 300 on a round trade ( Rs 150 on each leg), and additional service charge of Rs. 42 per round trade. Thus, total bank charges alone are about 342 per round trade.

As a thumb rule, the breakeven price for a NRI investing say up to Rs. 50,000 per trade is about 2%, or in other words, the transaction costs and taxes eat up about 2% of gains. For Rs. 25,000 per trade, this amount becomes about 3.75%

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