I have bought this shares of some company name Tatia Global Venture for 3.23. 436 shares bought.

With brokerage and all per share cost was 3.30 rupees.

As the stock went below 2.5 rs hdfc freeze any buy/sell for me in this stock.

Now when it again went above 2.5 levels for continuous 15 days they reallowed trading.

Today I placed an order for sell of all shares at 3.85. Also since now it being under T 2 T segment I hardly get buyers. Some dumbo bought just a single share and I saw 100 share bid at 3.60. I modified my trade price and 100 shares also got sold. Then there was no bid so I again modified my price to 3.85.

After the day ended I saw total 103 shares got sold.

I was somewhat happy that at least I won't make any loss including dp charge on my trade.

Since hdfc charges according to this structure

HDFC Securities

But my joy was short lived.

The contract note had trade worth rupee 372. I thought with brokerage and other charges somewhere 360 would be the final total.

But hdfc charge brokerage of 25 rupees.And other charges bring that down to 28 rupees.

So 342 for my trade. Plus another 28 rupees will deduct next month.

So for 340 rupees price i'll get 310 rupees in short 10% loss almost.

Even at 2.5% per trade maximum brokerage charge would had been 10 rupees.And with hdfc structure it should have been 5-6 rupees.

Because 103*0.05= 5.15 rupees.

I have raised a flag with them.I just need second thought.

I too had a similar experience when I sold off from my brother's portfolio.

I had similar experience few months back but than i was not sure that for penny stock they charged 0.05 per share.

I raised a flag that instead of 25; 40 rupees deducted.They mailed back with detail example explanation for my query.

But this one surely looks doubtful. Because I have a buy of 900 rupees worth of shares and there the brokerage and other charges doesn't surpass 26 rupees. And here in 380 rupees trade they charging 28.

It seems they charged you min 25 brokerage as mentioned in their charge structure. You can remind them about the scrip you traded being below 10 Rs and probably you can get excess money refunded, unless off course you have missed some fine print somewhere.

Brother even if it's minimum 25 the print also states it shouldn't cross 2.5% of trade value. In my case its almost 7% of trade value.

Also if I haven't sold those 100 shares at low price changing the trade price.I might have been paying 25 rs brokerage on 9 rupees share sold as only 3 shares sold on upper circuit price.

And yes I agree for penny (below 10 rupees) stock. The treatment is 0.05 per share traded.

They charged me 0.25 per share.

Did you write to them about it?

2.5% is the limit that SEBI has imposed and brokers can't exceed it.

FAQ’s on Secondary Market

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Now this is turning interesting.

Yes I raised my concern on hdfcsec customer care and this is their reply

I asked same question on another forum and later I found out that for bse in penny stocks brokers are free to charge 0.25 per share per trade. But again it mentions 2.5% of contract value so again charging 0.25 looks wrong from their behalf.

Check here

BSEIndia

I am again raising a flag with serious message of closing my account and raising matter with sebi.

Don't be in a hurry to close your account.

Complain to SEBI and see what happens.

:: SCORES ::

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Dug up some more info on HDFC Securities:

Compliance Officer Name, Phone No. & Email ID: Mr. Baiju Budhwani, (022) 3075 0005, complianceofficer@hdfcsec.com.

CEO/M.D. Name, Phone No. & Email ID: Mr. Aseem Dhru, (022) 6741 9951, md@hdfcsec.com.

For any grievance/dispute please contact HDFC Securities Ltd. at the above address or email id- customercare@hdfcsec.com.

and for escalation you may write to us at services@hdfcsec.com.

In case not satisfied with the response,

please contact concerned exchanges BSE at is@bseindia.com and Phone no. 022 2272 8097,and NSE at ignse@nse.co.in and Phone No. 022 2659 8190.

Brother I am just raising this concern so that they look at my matter in urgent.

I don't plan to close my account as it contains around 60+ stocks.That would be really expensive.

But again paying 7% of trade amount as brokerage looks idiotic.

Also for a profit trade i'll be making loss and that too because of brokerage house.

Here only 15 rupees is on table what if tomorrow I buy some share of say 1 rupees 25000. At that time with same rule of 0.25 per shares I have to pay 6250 Rs as brokerage which means 25% brokerage amount.

The problem is that in stock broking business, even the guys at the top are not sure about rules and regulations laid down by SEBI.

I strongly recommend that you directly complain to SEBI and avoid wasting time with your broker.

SEBI's reply will not only resolve the whole issue, it will clear all our doubts about SEBI's rules for the maximum brokerage that a broker can charge from his clients.

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Can't register it says some error on final page error with page. But really can't make out what's the problem.

Try the SEBI Toll Free Investor Helpline:1800 22 7575.

Complaints & Assistance - Contact Details of Division Chiefs of SEBI.

Somehow it happened in firefox. IE was giving error.

Also a heavy worded letter forwarded to hdfcsec too.

Let's see whats their response.

This is their response of HDFC:

But no explanation given for say suppose I get a single share of 10 rupees or less, still I need to pay 25 rs minimum brokerage.

No response from scores yet.

I have decided to open a separate trading account with trading firm rather than hdfc for small trades. I really can't believe their indifferent attitude.

Last week only I made a trade worth of rupees 800-900 but I paid brokerage of 22. And here for 370 bucks trade I pay 25 rupees.

How many such small trades do you make in a month?

There isn't any point in trading such small quantities, unless you make at least 15-20 such trades every day.

When you have a long position of Rs 500, even if the stock moves up 5%, you make just Rs 25. Why waste precious time for earning such small amounts?

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No the trade which I had issue was worth smaller amount because I tried to sell all my 750 shares worth rupees 3.

But only 103 got sold.

The other which I am mentioning is of long term stock.

I buy 10 shares each every month sip way.

Those stocks are worth anything between 10 to 90 rupees. Like SCI, dena bank etc.

But issue is arising with penny stock.

Anyways I don't see a point taking the issue too far.

Though I will do try to burn my finger and see buying a single share worth anything less than 10 rupees and see how much they charge.

Because there saying charging 0.25 per share means 25 rupees for 103 shares.

Let's see how it goes for just 1 share.

1 share of 3 rupees and do they charge 25 rupees over the trade.

Instead of putting your hard money,

Why don't you write them an e-mail and ask for the charges?

Give them the same example as you did here.

I am sure they would reply.

Happy Investing

They have already answered - 25 paise is the maximum they charge per share that is less than Rs 10. .

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Received this letter from bseindia as cc to my sister.

http://i.imgur.com/1Dp2S.jpg

Note it's a 1 mb file.