The new transaction charges, established by the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), will take effect today. The revised cash, equities futures and options, and currency derivatives prices are consistent with the Securities and Exchanges Board of India's (Sebi) circular, which requires market infrastructure institutions (MII), including stock exchanges, to apply equal and uniform transaction charges.
In July, the Sebi published a circular revising the former slab-wise charge structure to provide transparency and equal and fair access to all market participants. "The MII charges which are to be recovered from the end clients should be True to Label, ie if certain MII charge is levied on the end client by members (ie stock brokers, depository participants, and clearing members)," the Securities and Exchange Board of India stated.
It is the responsibility of MIIs to guarantee that the charges levied by members match the amount received by them. On Friday, the NSE and BSE announced an adjustment to their transaction fees for cash, equities futures and options, and currency derivatives.
Here are the new rates, which will go into effect on Tuesday, October 1.
NSE revised rates
Segment- True to Label rate (per lakh of traded value)
Cash Market- Rs. 2.97
Equity Futures- Rs. 1.73
Equity Options- Rs. 35.03
Currency Futures- Rs. 0.35
Currency Options - Rs. 31.10
BSE revised rates
Segment True to Label rate
Equity futures- 0
Sensex and Bankex Options- 3,250
Sensex 50 and Stock Options- 500
Benefits of BSE and NSE revised transaction rates
The new transaction rates will replace the existing slab-based costs that different stock exchanges currently charge based on volume or activity. The older rates allowed brokers and other transaction members to profit from client size—or activity-based advantages, which means they could benefit from the difference between lower transaction charges paid to exchanges (due to high trading volumes) and charges passed on to clients (higher in value).
For instance, because of larger transaction volume, brokers may charge investors ₹49.5 per lakh of premium value or stock options even though they only paid ₹29.50 for the same transaction. The latest adjustment in rate will cut these advantages among members and increase transparency for end clients.
