Anomaly in present brokerage plan Appendix A Regulation 14.1

POSTED BY vkshah ON February 14, 2014 3:34 pm COMMENTS (3)

The present Brokerage Plan permits a broker to charge brokerage higher of

(i) @Rs.0.25 per share irrespective of Face Value and contract price


(ii) 2.5% per share of contract price

The above plan authorizes to fix their brokerage for the same nature of services in wide ranging plan irrespective to small investor interest, having no power to get negotiate the Brokerage, whereas the Big Financial institutes and the Wealthy investors having the negotiation power is allowed to get the brokerage at negligible per cent to their buying, thus is made able to control the market.

take for examples the ordinary investors have to pay the brokerage @ Flat rate in respect to their buying of share @ Rs.10/- or below irrespective of face value of shares, the other is in state to negotiate the Brokerage to their choice as of Flat rate or per cent of contract price per share again irrespective of FV

The anomaly above is brought to notice of SEBI who had forwarded the same EXCHANGE on the contrary the EXCHANGE is treating the same as the claim for refund of excessive Brokerage, instead of taking in proper prospective of looking into Plan to check the application against the petty small investors besides preferential treatment to the Big House and worthy investors, enabling them to control the market and to gain in a disproportionate way.

Every one who found the above as full of anomaly are equally requested to take the issue with the exchange to get reviewed the plan as one for all in the interest of investors

3 replies on this article “Anomaly in present brokerage plan Appendix A Regulation 14.1”

  1. ashalanshu says:

    Dear Vkshah, economy of scale is in favor of big investors.



  2. ashalanshu says:

    Dear Vkshah, how about changing your broker, if you feel the charges are not good.



    1. vkshah says:

      sir, chang in broker is not a remady at all in the days of on line investment as this requires even the change in demat account beside other formalities – transferring of off market share to the broker account.

      In etrading the role of broker in fact is limited as of channelising agency of routing the money and qantity of shares to demat account.

      Services of brokers in regard to Physical Shares are wide-sprade, as against present etrading of demated shares.

      Investors are burdend with a lot of expenses – Demat Account, Charges for to and fro of shares from Demat A/c. besides account maintenace charge, etc etc

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