No transaction charges on F&O trades on Nifty Next 50 for six months: NSE

No transaction charges on trades done in F&O contracts on Nifty Next 50 index for next 6 months: NSE

NSE on April 23 said no transaction charges will be levied on trades done in F&O contracts on Nifty Next 50 index for next 6 months from April 24, 2024 till October 31, 2024.

NSE had recently announced the introduction of trading in Futures and Options contracts on Nifty Next 50 Index with effect from April 24, 2024.

"In order to encourage active participants in Futures and Options contracts on Nifty Next 50 Index, it has been decided that no transaction charges will be levied on the trades done in Futures and Options contracts on Nifty Next 50 Index (NIFTYNXT50) in Future & Options segment from April 24, 2024 (product launch date) till October 31, 2024," said NSE in a circular on April 23.

"The introduction of derivatives on the Nifty Next 50 index (NIFTYNXT50) will complement the existing index derivatives product suite well. The Nifty Next 50 index represents the space between the Nifty 50 index, comprising the top large and liquid stocks, and the Nifty Midcap Select index, comprising the top large and liquid mid-capitalized stocks," said Sriram Krishnan, Chief Business Development Officer, NSE earlier this month.

The cash-settled derivatives contracts will expire on the last Friday of the expiry month, NSE had said.

The Nifty Next 50 Index consists of 50 companies from the Nifty 100, excluding the Nifty 50 companies. The index is also sometimes referred to as Junior Nifty.

As of March 2024, the index had the top sector representation from the financial services sector, with a weight of 23.76 percent, followed by the capital goods sector at 11.91 percent and consumer services at 11.57 percent. The index was introduced on January 1, 1997, with the base date and base value being November 3, 1996, and 1000, respectively.

The market capitalisation of index constituents stands at Rs 70 lalh crore, representing about 18 percent of the total market capitalisation of the stocks listed on NSE as of March 29, 2024. The aggregate daily average turnover of index constituents stood at Rs 9,560 crore, accounting for around 12 percent of the cash market turnover in FY24.