SEBI Charges

SEBI Charges are regulatory fees levied by the Securities and Exchange Board of India (SEBI) on every transaction executed in the stock and commodity markets. These charges are collected by brokers from traders and investors, and then deposited with SEBI.

They are not the broker’s income but a mandatory regulatory cost, ensuring funding for SEBI’s operations in regulating, monitoring, and developing the securities market in India.

How SEBI Charges Work

1. Applicability
• SEBI charges apply on the turnover value of transactions in equities, derivatives (F&O), currencies, and commodities.
• Charged on both buy and sell transactions.
2. Rate (Current Standard)
• ₹10 per crore (0.0001%) of turnover (as per the latest SEBI circulars; subject to revision by SEBI).
• Example:
• Turnover = ₹5,00,000
• SEBI Charges = ₹5,00,000 × 0.0001% = ₹0.05

        3. Broker’s Role

• Broker collects SEBI charges along with brokerage, exchange fees, GST, and stamp duty.
• Broker remits the collected SEBI fee directly to SEBI through the exchange mechanism.

Why SEBI Charges Are Levied

• To fund SEBI’s regulatory and administrative activities.
• To ensure investor protection, market surveillance, fraud detection, and fair practices in capital markets.
• To maintain infrastructure for smooth functioning of stock and commodity exchanges.

Note:

• Brokers act only as collection agents for SEBI charges.
• They cannot modify, waive, or retain these fees.
• Displayed clearly in the contract note for transparency.