I an trying to understand the exact transaction charges I incur when I leave Nifty/Banknifty options to expire ITM
I am surprised that after scouring the internet, I was unable to find any documentation on this from Zerodha’s end. There are some charges mentioned but they don’t add up to what is mentioned in Zerodha’s contract note
The brokerage calculator doesn’t seem to have any option to calculate charges upon exercising the option (letting the option expire)
The charges applicable for exercising cash settled options aren’t mentioned separately at List of all fees, charges, and taxes on trading and investing – Zerodha and what is mentioned isn’t adding up
My understanding so far is this:
If option expires OTM -
There is no trade as such hence there are no charges whatsoever
If option expires ITM -
1.Brokerage of 20/- is charged per trade
2. Exchange transaction charge is 0 but Investor Protection Fund Charge is applicable. This is 50/- per crore. Transaction value is calculated basis settlement price
3. STT of 0.125% is applicable on sell transactions alone which is double the 0.0625% if position is closed before expiry. This is rounded off to the nearest rupee
4. Stamp Duty is 0
5. SEBI Charge ??
6. GST is 18% of (Brokerage + Exchange Transaction Charge + Investor Protection Fund + SEBI Charge)
What I need help understanding is -
How much is the SEBI Charge and how is it calculated? For regular trades it is 10/- per crore on both buy and sell transactions
For the exercised ITM index options I seem to have been charged about 90/- per crore. How is this number arrived? Even if I calculate it basis turnover value and not the premium value it is about 13/- per crore
Most of my understanding is by reverse engineering the contract notes, please correct me if I am wrong about any of the above. It is really frustrating that after so many years of members requesting for it, we still are not able to see trade wise transaction charges. Even worse is the fact that there isn’t easy to understand documentation for how these charges are calculated.