BSE revises transaction charges on its options contracts

The revised charges will come into effect from May 13 for S&P BSE Sensex options and S&P BSE Bankex options. For the period between May 13-31, the premium turnover of these contracts will be cumulated and the transaction charges will be levied based on the slab on the incremental turnover basis.

From June, the premium turnover will be cumulated and the transaction charges will be levied based on the slab based on the incremental turnover month-on-month.

Recently, the market regulator Sebi had asked BSE to pay regulatory fee based on notional turnover and not premium turnover. Preliminary calculations done by the stock exchange shows that it could lead to an additional payout of Rs 165 crore plus GST.

NSE has already been calculating the regulatory fees on notional turnover whereas BSE and MCX were calculating on premium turnover. Sebi has, therefore, written to both exchanges to follow the notional turnover calculation. Chart

Notional turnover is calculated by multiplying strike price of each contract traded with the number of underlying assets in each contract while premium turnover is the sum of premiums paid on all contracts.

BSE has witnessed a significant jump in options volumes since it re-entered the index options market from May 2023. Its notional turnover has reached about 20% of NSE's notional turnover in March but premium turnover for BSE is only 8% of NSE's premium turnover.