NSE to cut cash, derivative transaction charges by 1%; rival BSE stock slumps

The reduction in charges will be effective from April 1, 2024, it said.

"The said reduction is estimated to have an overall impact of Rs 130 crore per annum on revenue from transaction charges of the company," NSE said.

NSE’s move to reduce transaction charges weighed on BSE’s stock, which plunged more than 4% to Rs 2,106.65 in trade today.

In early 2023, NSE had proposed to raise transaction charges sharply by 6% in both equity cash and derivatives segment. However, the exchange later on decided to rollback the same.

The transaction charges by the stock exchange is over and above the securities transaction tax, and GST levied on trades.

While the NSE had rolled back the hike in transaction charges, rival raised the charge on trades in the derivatives segment from November 2023.

BSE raised it primarily on S&P BSE Sensex options, particularly the nearest or immediate expiry contracts.

BSE charges Rs 500 for transactions per crore with a turnover up to Rs 3 crore, and Rs 3,750 per crore with a turnover of over Rs 3 crore and up to Rs 100 crore.

The hike by Asia’s oldest bourse came in the backdrop of rising volumes in its derivatives segment. Although NSE continues to have a dominant position in the derivatives segment, BSE managed to improve its share sharply in the last one year by moving the expiry day from the traditional last Thursday of the month.

BSE equity derivatives volumes picked up in the last quarter, with the average daily turnover growing to Rs 71.14 lakh crore in terms of the notional turnover, as of December end.