NSE, BSE Revise Transaction Fees Effective from October 1; Details Here
In a significant development in the Indian stock market, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have announced revisions to their transaction fees, effective from October 1, 2024. These changes are in compliance with a circular issued by the Securities and Exchange Board of India (SEBI) on July 1, 2024, which mandates a uniform fee structure for all members of market infrastructure institutions.
Revised Fees for Cash Market
For the cash market, the NSE will levy a transaction fee of ₹2.97 per lakh of traded value on each side. This uniform fee replaces the previous slab-wise structure that was dependent on the volume of trading generated by stock brokers.
Equity Futures and Options
In the equity futures segment, the transaction fee will be ₹1.73 per lakh of traded value on each side. For equity options, the fee has been set at ₹35.03 per lakh of premium value on each side. These rates are part of the broader effort to streamline and standardize transaction charges across different market segments.
Currency Derivatives
The NSE has also revised the transaction fees for currency derivatives. For currency futures, the fee will be ₹0.35 per lakh of traded value on each side, while for currency options and interest rate options, the fee will be ₹31.10 per lakh of premium value on each side.
BSE Revisions
The BSE has made significant changes to its transaction fees as well. For Sensex and Bankex options contracts in the equity derivatives segment, the transaction fee has been revised to ₹3,250 per crore of premium turnover value. Stock options and Sensex 50 options will incur a transaction fee of ₹500 per crore of premium turnover value. Notably, there will be no transaction fees for index futures and stock futures on the BSE.
Compliance with SEBI Circular
The revisions are in line with SEBI's directive to ensure that market infrastructure institutions (MIIs) adopt a uniform and 'true-to-label' fee structure. This means that the amount recovered from end clients must be the same as the amount paid by the trading members to the MIIs, eliminating any discrepancies in the fee structure based on trading volumes.
Impact on Market Participants
The new fee structure is expected to bring greater transparency and uniformity to the transaction fees levied by the exchanges. This change is part of a broader regulatory effort to enhance fairness and consistency in the market, ensuring that all trading members are treated equally regardless of their trading volumes.
In conclusion, the revisions to transaction fees by NSE and BSE, effective from October 1, 2024, mark a significant step towards aligning with SEBI's guidelines and promoting a more uniform and transparent fee structure in the Indian stock market.