Sharekhan is an old stockbroking house and is one of the biggest retail brokerages in India (stands after ICICI Direct and HDFC Securities among full-service stockbrokers). As such, with more and more NRIs investing in the Indian equity market, it becomes important to know about the Sharekhan NRI Trading Account as well.
And this is exactly what we are going to do in this detailed review.
Sharekhan NRI Trading Account Review
Sharekhan offers you a lot of options if you, as an NRI, want to open a trading account with Sharekhan. It offers you trading in Equity, Mutual Funds, IPO, and Derivatives trading.
For Equity, you will need a PIS account with Sharekhan. However, for Mutual Funds, IPO, and Futures & Options, PIS account is not required.
Sharekhan NRI Trading Account Charges
There are various Sharekhan NRI Trading Account charges levied on a trader. Let us discuss each of them.
1. Primary Sharekhan NRI Trading Account Charges
The account charges for Sharekhan depend on the bank which you have linked to your Sharekhan account.
If you are using HDFC bank account with the Sharekhan NRI Trading Account, you will be charged an Account Service charge of ₹2000 for normal KYC.
For downloaded and printed KYCs, the account service charge would be ₹3000.
For other banks that include Axis, Indusind, and IDBI bank, the account service charge for normal KYC is ₹1000. The account service charge for downloaded and printed KYCs is ₹2000.
2. Sharekhan NRI Trading Brokerage
The brokerage for Sharekhan NRI Trading Account charges depends on the type of transaction you are making.
For equity transactions, the brokerage charges are 0.50% of the transaction.
For transactions in Futures, the brokerage charges are 0.1% on the first leg, 0.02% on the second leg.
If the second leg is squared off on the same day as the first leg.
If the second leg is squared off on any other day, the brokerage charges applied will be 0.1%.
For transactions in Options, the brokerage charges will be a flat fee of ₹250 for every contract note.
It is important to note that there can be slight variations in these brokerages depending on the turnovers.
3. Sharekhan NRI Trading Account Fixed Bank Charges
When trading with Sharekhan NRI Trading Account, there are certain fixed charges that are levied on a trader by their bank. These charges also depend on the type of bank that an NRI trader uses to trade.
The Contract Note reporting charges for HDFC bank is ₹100 per contract note.
The Sale Proceeds Charge for calculation of TDS are not applied with HDFC.
For HDFC banks, there are no PIS issuance charges charged by the HDFC bank.
There is a PIS annual maintenance charge of ₹1000 as well.
Lastly, it is important to remember that you need to maintain a minimum bank balance of Rs 1000 as well.
The contract note reporting charges are ₹50 per contract note.
There are no charges for sale proceeds (used for TDS Calculation).
There are also no PIS Issuance charges with Indusind bank.
PIS Annual maintenance charges of ₹350 are also imposed.
You need to maintain an average quarterly balance of ₹20,000 at this bank.
The Contract note reporting charges for IDBI bank are ₹100 per contract note.
There are no sales proceeds charges used for TDS calculation.
The PIS issuance charges of ₹100 are imposed at IDBI bank.
The PIS annual maintenance charges of ₹1000 are also imposed.
You will need to maintain an average quarterly balance of ₹10,000 too.
The contract note charges are ₹150 per contract note.
There are no sales proceeds charges for the calculation of TDS.
The PIS Issuance Charges are ₹1500 for Axis bank.
You will also need to pay a yearly amount of ₹1500 as PIS annual maintenance charges.
The average quarterly balance that you will need to maintain is ₹10000.
These are all the Sharekhan NRI Trading Account charges that you will need to worry about. Of course, there is GST imposed on every fee that is charged to you.
Also, there might be an additional fee that is charged by the bank you are trading with. This fee needs to be clarified on the bank’s end.
4. Sharekhan NRI Trading TDS Charges
The Sharekhan NRI Trading Account charges are dependent on the net gains when calculating the TDS charges. These charges are as follows:
4. a. TDS Charges for Long Term Net Gains
When calculating the TDS charges, the long term net gains are further divided into three categories when you trade using the Sharekhan NRI Trading Account:
i. For long term net gains with surcharges, the TDS charges are 11.96% if listed on recognized exchange with STT.
These are paid on acquisition and transfer. If they are listed on a Recognized exchange without STT, they are charged as 23.92%. The unlisted TDS charges without STT are the same as the listed ones with STT at 11.96%.
ii. For long term net gains without surcharges, the TDS charges are 10.4% if listed on recognized exchange with STT.
These are paid on acquisition and transfer. If they are listed on recognized exchange without STT, they are charged as 20.8%. The unlisted TDS charges without STT are the same as the listed ones with STT at 10.4%.
iii. The period of holding for equity shares listed on a recognised exchange with STT should be more than 365 days.
The holding period for equity shares listed on a recognized exchange without STT charges is also more than 365 days. However, the holding period for unlisted equity shares should be more than 730 days.
4. b. TDS Charges for Short Term Net Gains
For equity shares listed on a recognized exchange with STT, the TDS charges on short term net gains are 17.94%. These are paid on acquisition of shares or their transfers.
For equity shares listed on recognized exchange without STT, the TDS charges are 35.88% on net gains. For unlisted equity shares, TDS charges are the same as listed ones without STT at 35.88%.
For short term net gains without surcharge, the TDS charges for equity shares listed on a recognized exchange with STT are 15.6%. for the equity shares that are listed on a recognized exchange without STT, the TDS charges are 31.2%. for unlisted equity shares, TDS charges are 31.2%.
The period of holding for short term gains for equity shares listed on a recognized exchange is 365 days. For unlisted shares, the minimum period of holding is 730 days.
These are all the Sharekhan NRI Trading Account charges you would need to keep in mind. However, there might be certain other charges exerted by your bank as well. Your bank will give you clearer information on that.
Other than that, you are all set. Feel free to question us regarding any queries. Happy Trading!
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More on Sharekhan
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