The National Stock Exchange (NSE) has extended concessions on transaction charges for currency derivatives by two months till September 30, a move that will help bring in more liquidity in the segment.
The bourse has also decided to continue with the transaction fee it is currently levying on trading members for interest rate futures (IRF) for two months.
The National Stock Exchange (NSE), in March, this year, lowered transaction charges for trading on its currency derivatives platform. It had, among others, given a discount of up to 59 per cent on such levies.
These concessions, which were valid up to July 31, have now been extended for a further period of two months.
“Without prejudice to our rights and contentions in the legal proceedings, it has been decided to extend the same for a further period of two months that is from August 1, 2015 till September 30, 2015,” NSE said in its latest circular.
In order to improve the liquidity in the currency futures segment, NSE in March 2015 had decided to provide a concession in the transaction charges including discounts.
As per the revised charges by NSE in March, all trading members are billed at a flat rate of Rs 1.10 per lakh of traded value in currency futures.
With regard to IRF, NSE is currently levying transaction charge of Rs 0.10 per lakh of volume in the segment.
Further, a contribution towards NSE Investor Protection Fund Trust is payable by the trading members at 0.000005 per cent (Rs 0.005 per lakh of the turnover) on each side.
“It has been decided to continue the same for a further period of 2 months (from August 1 – September 30, 2015),” the stock exchange said in a separate circular.
NSE cloaked in a turnover of over Rs 12 lakh crore in the currency derivative so far this financial year. The average daily turnover in the segment stands at Rs 14,798 crore.
In 2011, the Competition Commission of India (CCI) had found the NSE guilty of abusing its dominant market position and adopting unfair trade practices in currency derivatives trading by not charging for such trades.
NSE began levying transaction fees for currency derivatives soon after the CCI order few years ago.
