Cash Market Segment

General
1

What are the new transaction charges for the Cash Market Segment, and how do they compare to the previous charges?

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2

Hi @RM18 .
The new transaction charges for Equity Futures and Equity Options, effective from April 1, 2023, are as follows:

Equity Futures:

  • Up to First 2,500 Crores: Rs 1.90 each side (reduced from Rs 2.00)
  • More than Rs 2,500 Crores up to Rs 7,500 Crores: Rs 1.85 each side (reduced from Rs 1.95)
  • More than Rs 7,500 Crores up to Rs 15,000 Crores: Rs 1.80 each side (reduced from Rs 1.90)
  • Exceeding Rs 15,000 Crores: Rs 1.75 each side (reduced from Rs 1.85)

Equity Options:

  • Up to Rs 3 Crores: Rs. 2,500 (unchanged)
  • More than Rs 3 Crores up to Rs 100 Crores: Rs 50.00 (reduced from Rs 53.00)
  • More than Rs 100 Crores up to Rs 750 Crores: Rs 47.50 (reduced from Rs 50.50)
  • More than Rs 750 Crores up to Rs 1,500 Crores: Rs 42.50 (reduced from Rs 45.50)
  • More than Rs 1,500 Crores up to Rs 2,000 Crores: Rs 37.50 (reduced from Rs 40.50)
  • Above Rs 2,000 Crores: Rs 30.00 (reduced from Rs 33)

For example, if a trader trades Rs 3,000 Crores in Equity Futures, under the previous charges, the trader would pay Rs 2.00 for the first Rs 2,500 Crores and Rs 1.95 for the remaining Rs 500 Crores (Rs 3,000 Crores - Rs 2,500 Crores). With the revised charges, the trader would pay Rs 1.90 for the first Rs 2,500 Crores and Rs 1.85 for the remaining Rs 500 Crores. This results in a lower overall cost for the trader.

Similarly, if a trader trades Rs 120 Crores in Equity Options, under the previous charges, the trader would pay a flat fee of Rs 2,500 for the first Rs 3 Crores, and Rs 53.00 for the remaining Rs 117 Crores (Rs 120 Crores - Rs 3 Crores). With the revised charges, the trader would still pay a flat fee of Rs 2,500 for the first Rs 3 Crores, but the rate would be reduced to Rs 50.00 for the remaining Rs 117 Crores. This change leads to reduced transaction costs for the trader.

3

Index option buying look into reducing the transaction cost, rather than turnover.