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Informist, Friday, Sep 27, 2024

 

MUMBAI – The National Stock Exchange has revised the transaction charges on equity options to 35.03 rupees each side per 100,000 rupees of premium value, it said in a circular today. The change is effective from Tuesday. The revised transaction charge will equal 350.3 rupees per 1 mln rupees of premium value or 3,503 rupees per 10 mln rupees of premium value.

 

Earlier today, the BSE had announced a change in its transaction charges for Sensex options and Bankex options to 3,250 rupees per 10 mln rupees of premium turnover, while keeping that in stock options and Sensex 50 options unchanged at 500 rupees per 10 mln rupees of premium turnover.

 

NSE's revision in equity option transaction charges will apply to all index options and stock options trades. The NSE circular also said that transaction charges in equity futures were being revised to 1.73 rupees each side per 100,000 rupees of traded value with effect from Tuesday. Further, cash market transaction charges will be revised to 2.97 rupees each side per 100,000 rupees of traded value with effect from Tuesday, it said.

 

NSE's current transaction charges structure is based on turnover slabs. In equity options, NSE charges each broker a flat 2,500 rupees for billable monthly premium turnover of up to 30 mln rupees. For premium turnover of above 30 mln rupees and up to 1 bln rupees in a month, the current transaction charge is 49.50 rupees per 100,000 rupees of premium value on the incremental volume. The charge is 47 rupees per 100,000 rupees of premium value where the premium turnover is more than 1 bln rupees and up to 7.5 bln rupees in a month, and 42 rupees per 100,000 rupees for premium turnover above 7.5 bln rupees and up to 15 bln rupees in a month.

 

In equity options, for incremental premium turnover in a month above 15 bln rupees and up to 20 bln rupees the NSE currently imposes a transaction charge of 37 rupees per 100,000 rupees of premium turnover. The charge is 29.50 rupees per 100,000 rupees of premium on incremental turnover in the month above 20 bln rupees.

 

In equity futures, NSE's transaction charge is 1.88 rupees per 100,000 rupees of traded value for a month's turnover of up to 25 bln rupees. It is 1.83 rupees per 100,000 rupees of traded value for turnover above 25 bln rupees and up to 75 bln rupees in a month, and 1.78 rupees per 100,000 rupees of traded value for a month's turnover above 75 bln rupees and up to 150 bln rupees. For incremental turnover above 150 bln rupees in a month, the exchange charges 1.73 rupees per 100,000 rupees of traded value.

 

The transaction charges imposed by NSE in its cash market are also based on turnover slabs. For a month's turnover up to 12.50 bln rupees the transaction charge is 3.22 rupees per 100,000 rupees of traded value while for that above 12.50 bln rupees and up to 25 bln rupees is 3.17 rupees per 100,000 rupees of traded value. Where the month's incremental turnover is above 50 bln rupees and up to 100 bln rupees, it is 3.07 rupees per 100,000 rupees of traded value, and where incremental turnover is above 100 bln rupees and up to 150 bln rupees in a month, the transaction charge is 3.02 rupees per 100,000 rupees of traded value. On the incremental cash market turnover of above 150 bln rupees of a broker in a month, NSE charges 2.97 rupees per 100,000 rupees of traded value.

 

NSE's revision in transaction charges is on account of Securities and Exchange Board of India's circular of Jul 1 where it directed the stock exchanges, clearing corporations, and depositories to change their transaction charges structure imposed on their members in a way that will be "true to label" to the end clients of the members. The NSE said that SEBI's circular intended that a market infrastructure institution's charge structure be uniform and equal for all its members instead of slab-wise structure which is dependent on volume of the trading members.  End

 

Reported by Rajesh Gajra

Edited by Akul Nishant Akhoury

 

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