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The National Stock Exchange (NSE) has announced a 1% reduction in overall transaction charges levied across its cash equity and equity derivatives segments and products. The new lower fees will go into effect starting April 1st, 2024.
The exchange currently charges 0.00325% for transactions in the equity cash segment, 0.0019% for equity derivatives futures contracts, and 0.05% for equity options contracts.
The cut in transaction fees is expected to reduce NSE’s annual revenue from this source by approximately 1.30 billion rupees ($15.71 million). However, the move is aimed at boosting trading volumes, particularly in the burgeoning stock options market, and attracting more retail investor participation.
India’s equity derivatives segment has witnessed spectacular growth in recent years, with options trading gaining immense popularity among traders. By lowering the cost of trading, NSE is looking to further stoke this retail frenzy.