Stock market operator Bombay Stock Exchange (BSE), on Tuesday, announced that it will raise transaction charges for its two leading options contracts, linked to the Sensex and Bankex indexes, starting May 13.
BSE has decided to raise charges by 24 per cent to 32 per cent across different turnover brackets. This decision follows the request from India’s markets regulator for a revised fee structure for options contracts, potentially impacting the exchange’s earnings. BSE anticipates the Securities and Exchange Board of India (SEBI) total demand to amount to ₹1.65 billion.
The existing transaction fees for S&P BSE Sensex options and S&P BSE Bankex options will remain applicable from May 1 to May 10.
Between May 13 and May 31, the premium turnover of these contracts will be aggregated, and transaction charges will be imposed according to the slab, calculated on an incremental turnover basis.
Starting from June, premium turnover will continue to be aggregated, and transaction charges will be applied based on the slab, determined by the month-on-month incremental turnover.
The market regulator Sebi recently asked BSE to remit regulatory fees based on notional turnover rather than premium turnover. Initial assessments conducted by the stock exchange indicate that this adjustment could result in an extra disbursement of ₹165 crore plus GST.
BSE has experienced a notable surge in options volumes, since re-entering the index options market in May 2023. While its notional turnover has reached approximately 20 per cent of NSE’s notional turnover as of March, BSE’s premium turnover stands at only 8 per cent of NSE’s premium turnover.
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