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How is the refund of advanced brokerage  computed for Cash Segment?

On the transaction date, the transaction would be charged brokerage at 0.75%. The refund calculation will take place at the end of the quarter.

The quarters for the purpose of the computation are defined as: Q1 Jan1-March 31, Q2 April 1- June 30, Q3 July 1 – Sept 30, Q4 Oct 1- Dec 31.

Example -

Total Eligible Turnover

Brokerage rate

Brokerage charged

Rs 15,00,000/-

0.75%

Rs. 11,250/-

 Refund calculation

Total Eligible Turnover

Brokerage slab

Advanced Brokerage Refund

Refund to be credited

Rs 15,00,000/-

0.70%

0.05%  
(i.e. 0.75% minus 0.70%)

Rs. 750/-

The actual brokerage charged can be higher than Rs. 11,250/- as some trades may have been charged at a higher rate. This may happen when the trade value is below Rs. 3333/- and hence a flat brokerage of Rs. 25/- is charged. Service Tax and Securities Transaction Tax (STT)Service Tax, Securities Transaction Tax (STT), Transaction Charges and Stamp Duty  will be charged additional as per the applicable rate. Please note that the refund will not be greater than Rs. 750/-.

The refund amount will be computed only on the transactions on which brokerage has been charged. This volume is called the ‘Eligible Turnover’. Hence the square-off trades will not form part of the refund calculations.

How is the refund of advanced brokerage computed for Margin Segment?

On the transaction date brokerage would be charged at 0.05%. The refund calculation would take place at the end of the calendar month.

Example –

Total Eligible Turnover for margin

Brokerage rate

Brokerage charged

Rs 8,00,00,000/-

0.05%

Rs. 40,000/-

Refund calculation

Total Eligible Turnover for margin

Brokerage slab

Advanced Brokerage Refund

Refund to be credited

Rs 80,00,000/-

0.04%

0.01%
(i.e. 0.05% minus 0.04%)

Rs. 8,000/-

The actual brokerage charged can be higher than Rs. 40,000/- as some trades may have been charged at a higher rate. This may happen when the trade value is below Rs. 30,000/- and hence a flat brokerage of Rs. 15/- is charged. Service Tax and Securities Transaction Tax (STT) Service Tax, Securities Transaction Tax (STT), Transaction Charges and Stamp Duty will be charged additional as per the applicable rate. Please note that the refund will not be greater than Rs. 8,000/-.

The refund amount will be computed only on the transactions on which brokerage has been charged. This volume is called the ‘Eligible Turnover for margin’. Refund will be calculated as a percentage of the Eligible Turnover for margin.

How is the Refund of advanced brokerage computed for FUTURES segment?

On the transaction date brokerage would be charged at 0.05%. The refund calculation would take place at the end of the calendar month.

Note: Eligible turnover of Futures will be clubbed for computation of incentive refund calculation.

Example:

PARTICULARS

FUTURES

Eligible Turnover

8,00,00,000/-

Brokerage rate

0.05%

Brokerage charged

40,000/-

Refund calculation for Futures segment

Total Eligible Turnover for futures

Brokerage slab

Advanced Brokerage Refund

Refund to be credited

Rs 80,00,000/-

0.04%

0.01%
(i.e. 0.05% minus 0.04%)

Rs. 8,000/-

The refund amount will be computed only on the transactions on which brokerage has been charged. This volume is called the ‘Eligible Turnover for futures ’. Refund will be calculated as a percentage of the Eligible Turnover for futures .