NSE to roll back 6 per cent hike in transaction charge from April 1!

This was done partly to augment the investor protection fund trust

According to a recent announcement by the National Stock Exchange (NSE), the transaction charges on equity cash and derivatives segment, which were earlier increased by 6 per cent in January 2021, have been rolled back with effect from April 1.   

This was done partly to augment the investor protection fund trust. To enhance the corpus of NSE IPFT, the contribution has been recalibrated to Rs 10 per crore in cash equity and futures segments from Rs 0.01 per crore and Rs 50 per crore in equity options. The NSE has claimed that these changes will lead to an effective reduction in transaction charges by approximately 4 per cent.  

This news comes after the Finance Bill, 2023 was passed by the Lok Sabha on Friday, March 24, with some amendments. The bill was introduced by Union Finance Minister Nirmala Sitharaman, who also introduced 64 official amendments to the bill and stated that a committee would be set up under the Finance Secretary to address the needs of employees and maintain fiscal prudence regarding the pension system.   

The RBI was also requested to look into the issues related to credit card payments for foreign tours, with the aim of bringing them under the ambit of LRS and tax collection at source. Other amendments include changes in tax rates for mutual funds, offshore banking units and royalties earned by foreign companies, among others.