What is the maximum brokerage that a broker can charge? (2024)

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Let's delve into the various concepts covered in the article:

1. Maximum Brokerage:

   • The article mentions that the maximum brokerage a broker can charge is specified in Stock Exchange Regulations. According to BSE & NSE Bye Laws, a broker cannot charge more than 2.5% brokerage from clients.

2. FAQs:

   • The FAQs cover essential aspects such as the need for agreements with brokers, determining investment amounts, financial planning, calculation of Net Interest Margins (NIMs), registration verification of brokers, order placement, and payment timelines for buy and sell transactions.

3. Investing in Equities:

   • The article advises on how to choose stocks, monitor and review investments, the power of compounding, and preparation for investment.

4. Stock Types:

   • Various types of shares are discussed, including Bonus Shares, Cumulative Convertible Preference Shares, Cumulative Preference Shares, DVR Shares, and Equity Shares.

5. Charges and Settlement:

   • Details on charges levied by stock brokers, prescribed pay-in and pay-out days for funds and securities in normal settlement, and information required on the contract note are covered.

6. Market Terms:

   • Concepts like Open Interest, Secondary Market, 'In the Money', 'Out of Money', 'At the Money' in the context of Call Options, 'pari passu', and the implications of not receiving money or shares on the due date are explained.

7. Market Mechanisms:

   • The article touches upon the Capital Market, Money Market, Rolling Settlement, 'Call' and 'Put' options, Account Period Settlement, Auction, Arbitration, ASBA (Application Supported by Blocked Amount) in relation to IPOs.

8. Financial Ratios and Terms:

   • Various financial ratios and terms like Capital Adequacy Ratio, Commercial Paper, debt-equity ratio, dividend payout ratio, dividend yield, enterprise value, EPS (Earnings Per Share), free-float, and Margin Trading Facility are discussed.

9. Regulatory and Procedural Aspects:

   • Important regulatory aspects like Unique Client Code, 'Right of first refusal', 'Stoploss', Member-Client Agreement Form, Record Date, repo rate, reverse repo rate, Return on Equity (RoE), Short Selling, Securities Lending & Borrowing, Securities Transaction Tax (STT), swap ratio, T2T segment on BSE, cash EPS vs. EPS, rights vs. bonus shares, primary vs. secondary market distinctions, and client registration details are also covered.

10. Grievance Redressal:

    • Recourses available for redressing grievances are briefly touched upon.

In summary, the article provides a comprehensive overview of various aspects related to stocks, investments, and financial markets, catering to both beginners and those seeking a deeper understanding of these topics.