Charges

Charges

Let’s learn more about Charges. Apart from margins, there are other costs that incur while trading through an exchange. Users need to pay the amount for each transaction done during the previous month. The important provisions are listed below.

• Transaction charges:
• They are payable when a daily turnover of 20 crores is done. At the rate of Rs. 4 per Rs.100,000 worth of trade, the calculation is done by taking the total value traded by the member in a month divided by the number of trading days in the month.
• Due date:
• This is the date, i.e. the 10th of every month, on which the transaction charges are to be paid for the trades executed during the prior month.
• Collection:
• The collection of these pay is done by the Clearing Banks with the members keep the Exchange Dues Account.
• Adjustment against advances transaction charges:
• In terms of the regulations, members are required to remit Rs.50,000 as an advance transaction amount on registration. The transaction due first will be adjusted against the advance transaction charges already paid as advance and members need to pay the transaction only after exhausting the balance lying in an advance transaction.
• Penalty for delayed payments:
• If the transaction is not paid on or before the due date, interest is accrued to the existing amount as a penalty by the exchange.

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