BSE Shares In Green After Increasing Transaction Charges In Derivatives Segment

Shares of Bombay Stock Exchange (BSE) were on the rise on Monday after the company raised transaction charges for the derivatives segment.

What Happened: BSE increased the transaction charges for Sensex and Bankex options to ₹3,250 per crore of premium turnover. Premium turnover is the total premium paid for all the contracts traded in a day.

Suppose a trader buys a derivative with a lot size of 50 and pays a premium of ₹200 per lot, the premium turnover will be ₹10,000 (50 multiplied by 200).

BSE has not changed the transaction charges for other contracts in index futures and stock futures. For Sensex 50 options and stock options, there is a transaction charge of ₹500 per crore of premium turnover value.

The new charges will come into effect on October 1. 

Today's Best Finance Deals

See Also: Tata Motors Directed To Refund ₹16.95 Lakh With Interest For Faulty Nexon EV

NSE has also increased transaction charges for derivatives trading. In the equity futures segment, ₹1.73 per lakh will be applied per lakh of traded value for each side in the transaction.

In the cash market, ₹2.97 will be charged per lakh of traded value in each side while in equity options, ₹35.03 per lakh will be levied on the premium value from buyers and sellers.

The stock exchanges are increasing transaction costs after market regulator SEBI came out with a “true to label” policy which prompts market infrastructure institutions (MII) like stock exchanges to charge all players equally rather than a volume-based slab structure.

Price Action: Shares of BSE fell from an intraday high of ₹3,741.45 but were trading up 0.14% at ₹3651.

Read Next: Govt To Investigate Fire At Tata Electronics’ Apple Factory In Tamil Nadu: Report