NSE to cut charges in spot,levy abuse charges in F&O

The National Stock Exchange (NSE) has revised the charges payable by investors on per Rs 1 lakh of trade in the cash segment by up to 0.0005 per cent,or Rs 0.50. The move is expected to benefit investors and boost trade volumes on the exchange. From October this year,transaction charges in the cash segment will be on a slab basis of between Rs 3 and Rs 3.25 per Rs 1 lakh. Presently,the exchange charges Rs 3.5 per Rs 1 lakh of traded value.

The exchange has also decided to reduce the charges it levies in the futures segment. In this segment,transaction charges will now be in the range of Rs 1.75 to Rs 1.90 per Rs 1 lakh,while at present NSE charges Rs 2 per Rs 1 lakh of the traded value. The exchange has also decided to impose a charge to deter system abuse in the futures and options (F&O) segment.

“Of late,it has been observed that the order-to-trade ratio in the F&O segment has been increasing significantly. Based on the analysis of the same,it has been observed that some trading members have been placing very large numbers of unproductive orders,which rarely result into trades in the F&O segment,leading to increase in latency in order placement and execution for the other members,” the NSE said.

According to the exchange,such members are observed to have very large order-to-trade ratio that is significantly higher than the market average. “In order to prevent such system abuse and to ensure fair usage of the system by all the members,it has been decided to levy a charge to deter system abuse form October 1,” the NSE said.