BSE increases transaction charges on Bankex and Sensex Options, effective May 13

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Bombay Stock Exchange (BSE) on Tuesday (April 30) announced a revision in transaction charges for Bankex and Sensex options, set to come into effect from May 13, 2024.

Under the new fee structure, transaction charges per crore for Bankex and Sensex options will vary based on the transaction volume. For transactions up to ₹3 crore, there will be no change, with charges remaining at ₹500 per crore. However, for transactions exceeding ₹3 crore up to ₹100 crore, charges will increase to ₹4,950, compared to the previous rate of ₹3750.

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The revised charges continue to escalate progressively based on transaction volumes. For transactions exceeding ₹100 crore up to ₹750 crore, the charges will be ₹4,700, up from ₹3,500. Similarly, transactions exceeding ₹750 crore up to ₹1,500 crore will incur charges of ₹4,200, as opposed to the previous rate of ₹3,000.

For volumes exceeding ₹1,500 crore up to ₹2,000 crore, charges will amount to ₹3,700, compared to ₹2,500 previously. Transactions exceeding ₹2,000 crore will be charged at ₹2,950 per crore, up from ₹2,000.

Earlier, brokerage firm HDFC Securities called the revision in transaction charges a regulatory setback, adding that it will have to pay a regulatory fee of up to ₹310 crore in the financial year 2026, which is nearly 22% of its projected net profit for that financial year.

A way to offset the impact of the higher regulatory fees is to increase the transaction charges by 25% and reduce clearing charges by nearly 10%, which will reduce the impact to only 5% and 2% for the financial years 2025 and 2026 respectively, the brokerage wrote in its note.

BSE currently charges ₹26 per billion on options premium and the clearing and regulatory cost is 29% and 38% of the derivative revenue. “The regulatory fee impact for BSE is amplified because it collects a nearly one-third premium for the same notional volume compared to NSE and pricing is nearly 25% lower,” the brokerage said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow