Every time an investor buys or sells shares, s/he needs to pay certain charge to the stock broker. This charge is referred to as Brokerage Commission. The rate of brokerage commission on equity transactions, in secondary market, ranges from 0.7 percent to 1 percent depending on the traded amount.
The following tables provide the information on brokerage commission as per the rules of NEPSE.
A. Brokerage Commission for Equity
| Traded Amount |
Rate of Commission |
| Up to Rs.50,000 |
1% |
| Rs.50,001 to Rs.4,99,999 |
0.9 % |
| Rs.50,001 to Rs.9,99,999 |
0.8 % |
| Above Rs.10,00,000 |
0.7 % |
B. Brokerage Commission for Government Bond
| Traded Amount |
Rate of Commission |
| Up to Rs.5,00,000 |
0.20% |
| Rs.5,00,001 to Rs.49,99,999 |
0.10% |
| Above Rs.50,00,000 |
0.50% |
C. Brokerage Commission for all other financial instruments not mentioned in A and B
| Traded Amount |
Rate of Commission |
| Up to Rs.50,000 |
0.75% |
| Rs.50,001 to Rs.49,99,999 |
0.60% |
| Above Rs.50,00,000 |
0.40% |
The brokerage commission is not the net revenue of the broker. It is distributed as follows:
- 60% of the brokerage is retained by concerned Broker.
- 25% of the brokerage is paid to NEPSE.
- 15% of the brokerage is deducted as TDS (Tax Deducted at Source).
Note: The rate of commission is charged on the transaction amount.
