NSE Transaction Charge: There is good news for stock market investors. The National Stock Exchange, considered the country's largest stock exchange, has decided to reduce the charges for cash transactions and trading in the derivatives segment in the stock market. This decision of the National Stock Exchange will come into effect from April 1, 2024. The board of MSE has approved the reduction in transaction charges.
At present, the National Stock Exchange charges 0.00325 per cent for equity trade in cash segment, while NSE's rival exchange BSE charges 0.00375 per cent for equity trade in cash. NSE charges 0.0019 per cent transaction charge on future trades while on option trades this charge is 0.05 per cent.
National Stock Exchange's decision to reduce transaction charges will result in a loss of Rs 130 crore in annual revenue. In the first nine months of 2023-24, NSE has earned revenue of Rs 8330 crore from transaction charges, which is 16 percent more than the same period of the last financial year.
It is believed that this decision of National Stock Exchange to reduce transaction charges will increase the trade volume on NSE. In the coming days, trading will increase in the stock market in view of the increasing number of investors. If there are signs of increase in foreign investment, then reduction in transaction charges will help in attracting foreign investors from retail, which will increase the trade volume of NSE.
It is believed that there has been a strong surge in the equity derivatives volume on NSE's rival stock exchange BSE, especially in the last quarter, which is challenging the dominance of NSE. This is the reason why NSE has had to take the decision to reduce transaction charges to maintain its dominance, which can be compensated by volume growth.
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