I came to know that on NSE Download Ref No. NSE/FA/56129 Circular No. 1/2023, the minimum transaction charge for equity options is 2.5% [{2500 / 1,00,000}*100], but brokers are giving relief on this as up to 2.45%, as we pay 0.05% for this. These charges are similar to the income tax slab.
Is this the end of the volume era in NSE? If I am mistaken, please clarify. I am thoroughly confused by the NSE circular. It might be fat-finger that transactions up to 3 crore, a charge of 0.025% is applicable, which is justifiable as compare to 2.5% and rest 2.55%,2.5975% and so on. If this is not a typo, NSE and GST department has incurred significant losses in transaction charges. And also, with reference to SEBI research papers and articles, SEBI should also mention NSE losses. As a regulatory body, the publishing report should be passed on from the GST department, stock exchange, brokers, and last investor and trader.
I am not sure what exactly is the concern you are raising here, but I don’t really see any problem with the circular. To put it mildly, looks like you are overreacting
Couple of things to understand, this circular is for trading members (like brokers) and not directly for retail individual traders.
So when it says Rs. 2,500 flat fee for 3 cr monthly turnover, it is monthly turnover of broker. And not your individual turnover.
So it is like Rs. 2,500 fixed fee and as turnover increases beyond 3 cr (which should easily happen if you are a broker) rates are very close to 0.05%. (or even lower for higher turnovers).
Hope this clarify some of your concerns.
Beyond that, your concerns about NSE making losses, BSE searching for gold, and complains about SEBI missing, did not make any sense, so not replying to that.
This account, charged at 0.05%, has been revised from 0.053%. If NSE takes notice, there might be a circular to recover the non-charged 2.45%, possibly leading to an average penalty and interest rate of 18% p.a.—impacting the market. Where’s the risk assessment? It would be a relief if SEBI could step in to address the high transaction charges, perhaps imposing restrictions so that no exchange can levy charges beyond a certain rate. My main concern is personal, and clarity is needed on these charges, especially in comparison to the broker’s list, excluding equity options where the charges align.
Frankly, at this point, none of you comment is making sense.
But if you are implying that NSE increased the rate effective 1st April 2023, but FORGOT to charge it and now they are going to charge everyone difference with penalty and interest rate, then you are not reading it correctly.
I can only say, stop overreacting, sky is not falling.
