How will NSE's 1% reduction on cash equity, derivates transaction charges benefit retail investors?
₹130 per annum on the company's revenue from transaction charges. According to market experts, the NSE's move could potentially drive up volumes, especially at a time when stock markets are hitting record highs driven by foreign capital and economic growth, with high volumes in stock options trading drawing a large number of retail investors.
Also Read: NSE to cut cash, derivatives transaction charges by 1% ‘’This commendable initiative is poised to significantly lower the overall cost of transactions, fostering a more accessible and efficient trading environment. The reduction in transaction charges not only underscores NSE's commitment to enhancing market accessibility but also aligns with the broader goal of promoting investor participation and market liquidity,'' said Narinder Wadhwa, National President at Commodity Participants Association of India (CPAI).
‘’By making transactions more cost-effective, NSE has taken a significant step towards empowering investors and market participants across the nation. We applaud NSE for its proactive approach in addressing the needs of market stakeholders and for its relentless efforts towards fostering a robust and dynamic securities market in India,'' added Wadhwa.
Currently, NSE's transaction charges for the equity segment are placed at 0.00325 per cent, and for the derivatives futures segment it is fixed at 0.0019 per cent, For options, the rate stands at 0.05 per cent. Meanwhile, the Bombay Stock Exchange's (BSE) charges for equities are at 0.00375 per cent.
Nifty 50 and Sensex managed to end on Tuesday almost flat while most of their components ended with losses. The domestic market experienced a broad selloff while small- and mid-caps declined on concerns over stretched
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