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The National Stock Exchange (NSE) has significantly the lowered transaction charges on currency futures. The decision is expected to help in reducing the trading and hedging costs for various entities, including small and medium enterprises.
The fee starts at Rs 90 per crore of traded value for an incremental monthly turnover of up to Rs 1,000 crore in the currency futures and it comes down as the turnover rises. The new rate is applicable on both active and passive trade.
Earlier, Rs 110 per crore transaction fee was levied on such contracts.
As per the new slab structure for currency futures, incremental monthly turnover of over Rs 1,000 crore to up to Rs 2,000 crore will attract Rs 80 for every one crore of traded value.
On a monthly turnover of more than Rs 2,000 crore to at least Rs 3,000 crore will attract Rs 70 for every one crore of traded value, while the same for over Rs 3,000 crore would attract transaction charges of Rs 35 for every one crore of traded value.
Earlier, the exchange used to levy a fee of Rs 30 per crore of traded value on monthly turnover of over Rs 35,000 crore.
“It has been decided to revise the transaction charges for currency futures, with effect from August 1, 2017,” NSE said in a circular.
The move is based on feedback received from the market and is aimed at improving liquidity in the currency derivatives segment, it added.
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