NSE to cut trading charges by 10%; levy system abuse charges

In a move that would benefit retail investors, the National Stock Exchange (NSE) today said the transaction charges would be lower by about 10 per cent in cash and derivatives segments but would levy system abuse charges in the Futures & Options (F&O) category from October 1.

The transaction charges in cash segment will be on a slab basis of between Rs 3 and Rs 3.25 per Rs 1 lakh from Rs 3.5 per Rs 1 lakh charged at present, NSE said in circular.

In the F&O segment, the transaction charges will now be in range of Rs 1.75 to Rs 1.90 per Rs 1 lakh, while at present NSE charges Rs 2 per Rs 1 lakh.

"In order to prevent system abuse and to ensure fair usage of the system by all members it is being decided to levy a charge to deter system abuse in the Future & Options segment," the NSE added.

The cut in transaction charges in both cash and derivatives segments would help boost trading volumes, while the levy of system abuse charges would be in the interest of small investors.

Moreover, NSE does not have transactions charges when a new product is introduced and in some cases for development of the market it has not levied transactions charges at all.