Zerodha confirms free equity delivery, Nithin Kamath says ‘will continue to be free’

Zerodha has confirmed that equity delivery will remain free, with no changes to brokerage at this time. Starting October 1, 2024, charges for options and futures trading will be adjusted. For options, the Securities Transaction Tax (STT) will rise from 0.0625% to 0.1%, while the transaction charge will decrease from 0.0495% to 0.035%.

“Currently, we are not making any changes to our brokerage.” Regarding recent updates in the stock market effective October 1, he noted," said Zerodha CEO Nithin Kamath, “For options, the STT has increased to 0.1% from 0.0625%, while the transaction charge has decreased to 0.035% from 0.0495%.”

"This results in a net increase of 0.02303%, or ₹2,303 per crore of premium on the NSE, and 0.0205%, or ₹2,050 per crore on the BSE," he explained in a LinkedIn post.

"In the case of futures, STT will increase from 0.0125% to 0.02%, with the transaction charge slightly decreasing from 0.00183% to 0.00173%. This leads to a net increase of 0.00735%, or ₹735 per crore of futures turnover," Kamath said.

Since STT applies to the entire contract value for futures, he added that the impact will be significantly larger for futures traders than options.

Starting October 1, the Indian stock markets will undergo notable changes, as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) implement new transaction fees for brokers in multiple segments.

Increase in STT

Starting Tuesday, October 1, the Securities Transaction Tax (STT) for futures and options (F&O) will be raised. The STT on the sale of options will increase from 0.0625% to 0.1% of the premium, while the STT on the sale of futures will rise from 0.0125% to 0.02% of the trade price.

Standardised transaction fees for brokers

Effective October 1, the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) introduced new transaction fee structures for the cash and derivatives segments. In the cash market, the NSE will charge a fee of ₹2.97 per lakh of traded value on each side. For equity futures, the fee will be ₹1.73 per lakh on each side, while equity options will incur a fee of ₹35.03 per lakh of premium value.

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