Leading stock exchange NSE's board on Friday, March 24, has decided to roll back the increase of transaction charges in the cash equities market segment and equity derivatives segment, with effect from April 1, 2023.

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The charges were earlier increased by 6 percent, with effect from January 2021, partly to augment the NSE Investor Protection Fund Trust (NSE IPFT) corpus in view of certain market exigencies due to broker defaults at that point in time, NSE said in a press release.

Further, with the objective to systematically augment the corpus of NSE IPFT, it was also decided to recalibrate the contribution to NSE IPFT from Rs 0.01 per crore to Rs 10 per crore in cash equities market segment and equity futures and Rs 0.01 per crore to Rs 50 per crore in equity options.

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The reduction charges partially offset by the recalibration of contribution to NSE IPFT will lead to an effective reduction in the impact on overall transaction charges by around 4 percent, it said.

According to the Futures Industry Association (FIA), the NSE has again emerged as the world's largest derivatives exchange in 2022, in terms of the number of contracts traded. This is the fourth consecutive year when the exchange earned the top spot.

In addition, the exchange was ranked third in the equity segment by the number of trades (electronic order book) in 2022, an advancement from the previous year when it was in the fourth position, as per statistics maintained by the World Federation of Exchanges (WFE).

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(Edited by : Shoma Bhattacharjee)