Taxation of Brokers Prop Desk versus Clients of Brokers

Are there any difference in taxes, like STT, SEBI turnover fees etc that prop desk of brokers dont have to pay that clients of brokers need to pay ? The reason I am asking is that in other countries, market makers dont pay a lot of taxes that market takers pay. Are there any such differences in India ? @nithin

SEBI Fees link

NSE Charges: Does a broker who makes market in F&O have to pay

All charges are exactly the same. The only saving will be in terms of stamp duty. As prop trade, broker is trading for himself, so there is no need to generate a contract note. Hence no need to stamp them.

There is no concept of market making in India for F&O.
When new contracts are launched exchanges might have some incentive schemes to promote them, but no market making.


@nithin: Are there any limit to number of trades per contract note ? As far as I know you get only one contract note a day which is stamped by the broker. So basically if you are in Haryana, its a saving of Rs 30 a day ?

No limit on number of trades. Yes, if the address proof is Haryana, the saving is just Rs 30 per day.

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Thanks @nithin , much appreciated you sharing your knowledge about this.