In a significant development for traders, the National Stock Exchange’s (NSE) board has approved a 1% reduction in transaction charges across various segments, providing much-needed relief to market participants. The revised charges will come into effect from the beginning of the next fiscal year on April 1.
The decision encompasses a 1% reduction in transaction charges across both cash equity and equity derivatives segments/products. In the equity delivery or cash segment, the transaction charge will be reduced to 0.00325%, while in the derivatives segment, it will be lowered to 0.0019%. This move is anticipated to impact the NSE’s annual revenue from transaction charges by approximately Rs 130 crore.
Notably, the NSE has also revealed plans to divest from non-core businesses, including technology and education. This strategic move aims to streamline operations and enhance the focus on core areas of expertise.
Following this reduction, NSE’s transaction charges will be lower than those of the Bombay Stock Exchange (BSE). The adjustment is expected to particularly benefit algorithmic (algo) and arbitrage trading strategies, encouraging increased participation in these segments.
It is worth mentioning that the NSE had previously rolled back a 6% hike in transaction charges on the equity cash and derivatives segment in March 2023, underscoring the exchange’s responsiveness to market dynamics and its commitment to facilitating a conducive trading environment.
In conclusion, this reduction in transaction charges by the NSE signals a positive step towards supporting traders and fostering a more competitive trading landscape.
