Sell shares for a profit, and the amount that lands in your bank account is almost always a bit less than you calculated. That gap comes from four separate charges — broker commission, a SEBON fee, a DP charge, and capital gains tax — that most investors know exist but rarely see broken down clearly. Here's exactly what you pay, and why.
1. Broker Commission (Tiered by Trade Size)
SEBON sets the maximum commission brokers can charge, structured as a tiered percentage that decreases as your trade size increases:
- Up to NPR 50,000: 0.36%
- NPR 50,001 – 5,00,000: 0.33%
- NPR 5,00,001 – 20,00,000: 0.31%
- NPR 20,00,001 – 1,00,00,000: 0.27%
- Above NPR 1,00,00,000: 0.24%
This commission applies on both the buy and the sell side of every transaction. These are SEBON-mandated maximums — individual brokers may charge less, but not more.
2. SEBON Regulatory Fee
A flat 0.015% fee is charged on the transaction value, on both buy and sell, and passed on to SEBON to fund its regulatory operations. On a NPR 1 lakh trade, this comes to about NPR 15.
3. DP (Depository Participant) Charge
A flat fee of NPR 25 per company, per transaction, charged by CDSC through your broker for depository services. Since this is a fixed amount regardless of trade size, it disproportionately impacts small trades — NPR 25 is negligible on a NPR 5 lakh trade but eats over 1% of a NPR 2,000 trade. (Some brokers apply this only on the sell side; others apply it on both — confirm the exact policy with your specific broker.)
4. Capital Gains Tax (Sell-Side Only, on Profit)
Unlike the other three charges, capital gains tax applies only when you sell at a profit, and only on that profit — not the full sale value. Under the FY 2026/27 rates (effective from mid-July 2026), individuals pay 7.5% for shares held over 365 days and 10% for shares held 365 days or less. For the full breakdown, see: Nepal Capital Gains Tax on Shares 2026.
Where Does Your Broker Commission Actually Go?
The commission you pay isn't entirely kept by your broker. It's split roughly as follows:
- ~79.4% retained by the broker.
- ~20% paid to NEPSE as an exchange commission.
- ~0.6% paid to SEBON as a regulatory fee.
Worked Example: A NPR 1,00,000 Trade
Say you buy shares worth NPR 1,00,000. On the buy side, you'll pay roughly NPR 330 in broker commission (0.33% tier), NPR 15 in SEBON fee, and NPR 25 DP charge — about NPR 370 total, or 0.37% of the trade. If you later sell at the same value, you'll pay the same three charges again on the sell side, plus capital gains tax on whatever profit you made. On a modest profit, these combined charges can meaningfully cut into your actual return — which is exactly why tracking your true cost basis matters.
Practical Takeaways
- Avoid very small trades where possible — the flat NPR 25 DP charge disproportionately eats into tiny transactions.
- Larger trades benefit from lower commission tiers — consolidating purchases into fewer, larger transactions (where practical) reduces your effective cost rate.
- Track your true cost basis — record commission, SEBON fee, and DP charge as part of your purchase cost, not just the share price, so your profit calculations are accurate.
- Factor in CGT before deciding to sell — especially around the 365-day holding mark, since the tax rate difference between short-term and long-term is significant.
Frequently Asked Questions (FAQ)
Can brokers charge more than the SEBON-set commission rates?
No, these are maximum rates set by SEBON. Brokers can charge less but are not permitted to exceed them.
Is the DP charge the same across all brokers?
Yes, the NPR 25 DP charge is a CDSC-set fee applied consistently, though whether it's charged on both buy and sell can vary slightly by broker — worth confirming directly.
Do these charges apply to IPO share allotments too?
IPO applications themselves don't carry broker commission since they go through Mero Share/ASBA directly, but once you later sell those allotted shares on the secondary market, all four charges apply as normal.
Conclusion
Every NEPSE trade carries four layered costs — broker commission, SEBON fee, DP charge, and capital gains tax on profit — and together they can meaningfully affect your actual returns, especially on smaller or frequent trades. Understanding this breakdown helps you calculate your true break-even price and avoid unpleasant surprises when your sale proceeds finally land in your bank account.
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