BSE revises transaction charges for currency derivatives

Top stock exchange BSE has decided to levy transaction charge in a phase manner from this month on trades done in currency futures and options contracts.

The exchange has increased the transaction charge to Rs 12 per Rs 1 crore of turnover on both active and passive trades done on its currency future contracts. Earlier, Rs 10 per crore transaction fee was levied on such contracts.

In March, BSE had decided to levy a flat transaction charge of Rs 10 per crore of turnover on both active and passive trades done on its currency futures contract from April 1. Prior to that, Rs 10 per crore transaction fee was levied on only active side of the trade transaction on currency future contracts.

In a circular BSE said it “shall levy the transaction charge in phase manner on trades done in currency futures and currency options contracts with effect from November 1, 2016”.

From November 1 to December 31, the exchange will charge Rs 12 per crore of turnover on active and passive trades done on its currency future contracts and Rs 500 per crore on premium value (on both active and passive side) on its currency options contracts.

From January 1, 2017 to February 28, next year, charges for currency future contracts would be Rs 15 per crore of turnover, while the same would be Rs 1,000 per crore of premium value for currency option contracts. It would charge Rs 18 per crore for currency future contracts and Rs 1,500 per crore for March-April period of next year.

BSE would levy a transaction charge of Rs 22 per crore of turnover on trades done on its currency future contracts during May-June next year and Rs 2,000 per crore on premium value.

From July 1, 2017 onwards, BSE would levy a transaction charge of Rs 25 per crore of turnover on trades done on its currency future contracts and Rs 2,500 per crore on premium value.

BSE had launched its currency derivatives platform in November 2013 and did not levy any transaction fees for trades done on this segment for almost a year. However, since December 2014 it began charging for currency derivatives.

It levied a Rs 2 per crore of turnover for two months from December 1, 2014 to January 31, 2015, and then increased to Rs 4 for the next two months.

BSE further hiked the charge to Rs 6 from April 1, 2015 for two months followed by Rs 8 for next two months. Since October 1, 2015, the exchange has been levying a transaction fee of Rs 10 on the currency derivative trades.