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BSE raises transaction fee on equity derivatives from November 1; stock hits record high

These transaction fee changes only apply to S&P BSE Sensex Options, with no revisions being done to transaction charges in other equity derivatives contracts.

October 23, 2023 / 12:11 IST
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Bombay Stock Exchange

BSE stock jumped over 13 percent and made a new all-time high at Rs 1,798.00 after the Bombay Stock Exchange announced on October 20 that it would increase transaction charges on the equity derivatives segment with effect from November 1.

These changes will primarily be levied on S&P BSE Sensex Options, particularly the nearest or immediate expiry contracts. The new transaction fee structure is based on the incremental billable monthly turnover (premium value).

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With BSE slowly improving their market share in the derivatives segment, this move to increase transaction costs will negatively impact traders and especially retail investors, according to market experts.

"As the majority of the retail investors are option buyers, any increase in transaction costs would further impact their breakeven point and make it more difficult to consistently make profits," said A R Ramachandran of Tips2trades.