More Clarity on Your Trading Charges with Kotak Neo

At Kotak Neo, we are committed to making your trading experience more transparent and hassle-free. As part of this effort, we are introducing a change in how brokerage and statutory charges are accounted for on Equity Derivatives orders, effective 19th October.

This change will help you manage your available funds more effectively and reduce the chances of unexpected negative ledger balances due to brokerage and statutory charges.

What is changing?

Currently, brokerage and statutory charges are calculated as per your applicable brokerage plan and deducted from your trading ledger during end-of-day (EOD) processing. As a result, your ledger balance is adjusted for these charges at the end of the trading day.

From 19th October, Kotak Neo will temporarily block ₹10 per order towards brokerage, along with applicable statutory charges, when you place an F&O order.

This is a temporary hold and not the final deduction. The actual charges will be calculated as per your applicable brokerage plan and statutory rates, deducted from your ledger during EOD processing, and reflected in your contract note.

How will it work?

Here's how the new process will work:

1. At the time of order placement for F&O: ₹10 per order towards brokerage, along with applicable statutory charges, will be temporarily blocked.
2. During end-of-day processing: The final actual charges will be calculated as per your applicable brokerage plan and statutory rates.
3. Final deduction and adjustment: The actual charges will be deducted from your trading ledger and reflected in your contract note. Any difference between the amount blocked and the actual charges will be adjusted during EOD processing.

What are the benefits for you?

1. Improved fund management
With applicable charges temporarily blocked at order placement, you can get a clearer picture of your available trading balance and plan your trades accordingly.

2. Fewer unexpected ledger adjustments
Accounting for charges upfront helps reduce the chances of a negative ledger balance arising later due to brokerage and statutory charges.

3. Transparent and accurate billing
The final charges will be calculated according to your applicable brokerage plan and statutory rates. Your contract note will reflect the actual charges levied, giving you a clear record for reference.

4. Automatic adjustment of differences
The amount temporarily blocked may differ from the final actual charges. Any excess amount blocked or additional amount payable will be adjusted during EOD processing, ensuring that the final deduction reflects the applicable charges.

Do you need to take any action?

No action is required from your end. The change will take effect automatically from 19th October, and you can continue trading on Kotak Neo as usual.

At Kotak Neo, we continuously work towards making your trading experience simpler and more transparent. This initiative is another step towards helping you manage your funds with greater clarity and reducing unexpected ledger adjustments.