Bombay Stock Exchange (BSE) announced on Tuesday its decision to increase transaction charges for its primary options contracts tied to the Sensex and Bankex indexes, effective May 13.
The charges will be raised by 24% to 32% across various turnover brackets, in response to a request from India’s markets regulator for a revised fee structure for options contracts.
This move could potentially impact the exchange’s earnings, with BSE estimating the total demand from the Securities and Exchange Board of India (SEBI) to amount to Rs 1.65 billion.
Existing transaction fees for S&P BSE Sensex options and S&P BSE Bankex options will remain in effect from May 1 to May 10.
From May 13 to May 31, transaction charges will be imposed based on aggregated premium turnover of these contracts, utilizing a slab structure calculated on an incremental turnover basis.
Starting in June, transaction charges will continue to be applied based on premium turnover aggregation, with the slab determined by month-on-month incremental turnover.
Recently, market regulator SEBI requested BSE to remit regulatory fees based on notional turnover rather than premium turnover. Preliminary assessments by the stock exchange suggest that this adjustment could result in an additional disbursement of Rs 165 crore plus GST.
BSE has seen a significant surge in options volumes since re-entering the index options market in May 2023. Although its notional turnover has reached approximately 20% of NSE’s notional turnover as of March, BSE’s premium turnover stands at only 8% of NSE’s premium turnover.