NSE reduces transaction charges by 1%; to exit from non-core businesses

This reduction transaction charges for cash equity and equity derivatives will begin on April 1, 2024, and is anticipated to impact the company's charges by Rs 130 crore

The board of the National Stock Exchange (NSE) has approved a 1 per cent reduction in transaction charges for cash equity and equity derivatives, effective from April 1, 2024.

Currently, the transaction charge in the equity delivery or cash segment stands at 0.00325 per cent, while in derivatives, it is 0.0019 per cent. This reduction is anticipated to impact the company's annual revenue from transaction charges by approximately Rs 130 crore.

This development follows the NSE's decision in March 2023 to roll back a six per cent hike in transaction charges on the equity cash and derivatives segment.

In addition to this move, NSE has also revealed its plans to divest non-core businesses, including technology and education. The divestment process garnered interest from over 60 parties, with seven submitting non-binding bids.

Following thorough due diligence, final offers were received from two buyers, and the highest bidder has entered into exclusive negotiations. Avendus served as the transaction adviser, with support from Deloitte for finance & tax diligence, Deloitte as the tax adviser, and Indus Law as the legal adviser. The expected completion date for the sale is March 31, 2024.

NSEIT Limited, a wholly owned subsidiary, is set to sell its digital technology business, including subsidiaries NSEIT US, Aujas Cybersecurity Limited, and CXIO Technologies Limited, to Investcorp for an agreed value of Rs 1,000 crore. The Enterprise Value for the Digital Technology Business is anticipated to range from Rs 425 crore to Rs 475 crore.

NSEIT's standalone business comprises two main segments: Digital Examination Business and Digital Technology Business. The current sale to Investcorp exclusively involves the Digital Technology Business. Since it is a business segment and not a distinct entity within NSEIT Standalone, the divestment will be carried out through a slump sale, according to NSE's release.