There may be many reasons for FII selling, but as per our researc, ah few points need to be noted for the excess selling of FIIs
1.Due to the increasing in Transaction Charges from Oct 2024, it seems all the profit made by a trader will go as Transactions Charges.
2.For every 300 Rs buying or Selling, One trader needs to bear .60 Rs ( 60 Paisa) as transaction charges.
3.That means every day trader trading with full capital, say 2 to 5 times trying has to bear 0.5% to even 2% as transaction charges.
4. If the process continues in compounding effect traders account will vanish as transaction charges in 2 to 3 months.
So, it will be difficult for any sensible institute to digest these high transaction charges.
These are the main reasons FII sells. I hope authorities will pay attention to making STT 0 so that traders can grow the industry.
