The board of National Stock Exchange (NSE), at its meeting held on March 11, approved the reduction in overall transaction charges across cash equity and equity derivatives segments by 1 per cent, effective April 1, 2024.
The said reduction will have an estimated impact of ₹130 crore p.a. on the revenue from transaction charges of NSE. The transaction charges are levied slab-wise depending on the total traded value. The move is expected to benefit investors and brokers, if volumes increase meaningfully.
Last year the bourse had rolled back the 6 per cent increase in transaction charges on equity cash and derivatives segment. In January 2021, the charges were increased by 6 per cent, partly to augment the investor protection fund trust.
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Nod for sale
The Board has also approved the sale of the digital technology business of NSEIT, a wholly-owned step-down subsidiary of NSE along with NSEIT’s subsidiaries NSEIT US, Aujas Cybersecurity, CXIO Technologies to Investcorp, a US-based leading global manager of alternative investments. The expected date of completion of sale is March 31, 2024.
The Digital Technology Business of NSEIT will be sold to Investcorp on a slump sale basis. Its revenue for FY23 and year-to-date December 31, 2023 was ₹242 crore and ₹221 crore, respectively. Net assets as on March 31, 2023 and as on December 31, 2023 were ₹74.58 crore and ₹111.9 crore, respectively.
NSE had decided to exit from its non-core businesses including the technology and education businesses at its Board meeting held on November 5, 2022. Subsequently, the process for divestment was initiated with the bankers preparing a detailed information memorandum and financial model.