The National Stock Exchange (NSE) has announced that it will reduce transaction fees on its platform's equity cash and derivatives divisions by 6%, as opposed to the 6% rise that was recently implemented. The rollback will go into effect on April 1st, the exchange announced in a statement on March 24th. In response to market demands brought on by broker failures, NSE increased its transaction fees by 6% in January 2021.
The NSE Board of Directors resolved to roll back the rise of 6% in transaction charges, in the cash stock market segment and equity derivatives segment, with effect from April 1, 2023, according to an official statement from the exchange. The fees were previously raised by 6% with effect from January 1, 2021, in part to strengthen the corpus of the NSE Investor Protection Fund Trust (NSE IPFT) in light of market conditions at the time brought on by broker defaults."
Also, it was decided to adjust the contribution to NSE IPFT from 0.01 per crore to 10 per crore in Cash Equities Market Segment & Equity Futures and from 0.01 per crore to 50 per crore in Equity Options, in order to steadily increase the corpus of NSE IPFT "It read.
This decrease was, however, only partial because the payment to NSE IPFT was also recalculated. As a result, it is predicted that these modifications will result in a 4% decrease in transaction fees overall.
The announcement comes shortly after the Finance Ministry increased the securities transaction tax (STT) on contracts for futures and options (F&O), which will take effect in April 2023.
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