look news india
The country's leading stock exchanges BSE and NSE on Friday revised their transaction charges for cash and futures options trades. The move comes after SEBI mandated a uniform fee for all members of institutions involved in market infrastructure, including stock exchanges. The stock market has said in a separate circular that the new revised rate will be effective from October 1 i.e. Tuesday. In the BSE equity futures options segment, Sensex and Bankex options contracts have seen transaction charges revised to Rs 3,250 per crore premium traded. However, transaction fees for other contracts in the equity futures-options segment will remain unchanged.
SEBI issued circular
In July last year, SEBI had issued a circular regarding charges for market infrastructure institutions. NII will have a uniform fee for all members, it said. Which will replace the existing volume based system of trading. Notably, the securities transaction tax on futures and options has been gradually increased by 0.02 per cent and 0.1 per cent in Budget 2024. The income received on share buyback will be taxable to the beneficiaries. This change will be effective from October 1, 2024. However, since taxes on traders have doubled, transaction volumes may decrease. On the other hand, higher taxes will increase profit margins for investors. This may encourage them to take more risks.
Why was this step taken?
SEBI has taken this step to protect the interests of investors and reduce speculation in the stock market. According to SEBI, in the year 2024, about 91 percent of F&O traders have suffered a total loss of Rs 75 thousand crore in risky business. Moreover, the flood of liquidity and enthusiasm of retail investors is becoming a deadly combination for the world's most expensive equity market. Industry experts consider these changes as necessary for a sustainable investment scenario in the country as well as balanced and orderly development of the capital market.