Zerodha Benefits from NSE Discounted Transaction Charges on Higher Turnover

[Praksy]

@rachit

Is it confirmed…?

and one more Query…it means…they are collecting extra GST too…on higher transaction charges…as in fact.they pay low GST…it seems illegal?

Yes, confirmed. One year back also, someone asked the same thing in this forum. You can check.

What do brokers gain by giving MIS leverage?

Yes, the exchange does share some part of its revenue with the broker by giving them rebate/discount on the exchange transaction charges. This is how Zerodha advertises that it is giving Equity Delivery for free, whereas Zerodha is in fact earning by charging users the higher non-discounted exchange transaction charge, and then pocketing the discount from the exchange.

Regarding charging higher GST, it looks like they are collecting higher, but don’t know about legal or illegal, or how they manage it?