Shares of BSE rallied 13% to scale a fresh life-time high at ₹1,798 in Monday's (October 23) trade after the Bombay Stock Exchange revised transaction charges in the equity derivatives segment, with effect from November 1, 2023. With this, the stock has climbed over 200% since the beginning of this year.

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These changes will primarily be levied on S&P BSE Sensex Options, particularly the nearest or immediate expiry contracts, according to BSE notice. The new transaction fee structure is based on the incremental billable monthly turnover (premium value), the stock exchange said adding that there has been no changes in the transaction charges in any other equity derivatives contracts.

"Accordingly, premium-based turnover on these nearest expiry contracts shall be calculated on daily basis and cumulated at the end of the month. Transaction charges shall be levied based on the slab on the Incremental turnover basis (as stated above) on cumulative turnover at the end of the month," BSE said.

The stock exchange said that its members would be provided a new turnover and transaction charges file based on the new transaction charges structure.

With BSE slowly improving their market share in the derivatives segment, this move to increase transaction costs will negatively impact traders and especially retail investors, market experts said.

"As the majority of the retail investors are option buyers, any increase in transaction costs would further impact their breakeven point and make it more difficult to consistently make profits," according to A R Ramachandran of Tips2trades.

Under the revised fee structure, transactions with turnover up to ₹3 crore will be charged at ₹500 per crore. For turnover of over ₹3 crore and up to ₹100 crore, the transaction charges will be ₹3,750 per crore.

For turnovers in the ₹100 crore and ₹750 crore range, charges of ₹3,500 per crore will be applied. Transactions with turnovers between more than ₹750 crore and ₹1,500 crore will have charges of ₹3,000 per crore.

For turnovers of above ₹1,500 crore and up to ₹2,000 crore, the transaction fees will be ₹2,500 per crore. For turnovers of above ₹2,000 crore, a transaction fee of ₹2,000 per crore will be charged.

(Edited by : C H Unnikrishnan)

First Published:Oct 23, 2023 11:49 AM IST