NSE slashes rates in equity options segment

NSE would provide a flat concession of 40% on transaction charges on the premium value of above Rs 750 crore in a month

NSE has slashed rates by about 40% in the equity options trades in a bid to improve liquidity in the segment.

As per a circular on the exchange website, NSE said that it would provide a flat concession of 40% on transaction charges on the premium value of above Rs 750 crore in a month. This would be done on a pilot basis for two months effective from December 1, 2014 to January 31, 2015.

Further, the NSE has launched a liquidity enhancing scheme for market making in exchange traded funds (ETFs) on the NSE Indian indices.

“NSE has been actively involved in creating awareness about equity ETFs as a simple and efficient asset class. However, the volume has remained very low affecting the liquidity and increasing the impact cost,” said the exchange in a circular on its website.

This would also be conducted on pilot basis and would be computed and settled on a monthly basis, said the circular.

Market makers for the scheme are identified as those entities which provide quotes on both buy and sell sides for ETFs on a day for at least 80% of the trading time within the top 10 price points and which satisfy the minimum quality of buy and sell as specified by the exchange.

Also, only those equity ETFs which see a turnover of over Rs 50 lakh will be eligible for the scheme.