BSE to levy uniform transaction fee on currency derivatives

Mumbai: Top stock exchange BSE has decided to levy a flat transaction charge of Rs 10 per crore of turnover on both active and passive trades done on its currency derivative segment from April 1.

Currently, Rs 10 per crore transaction fee is levied on only active side of the trade transaction on currency future contracts. Similarly, for currency options contract the transaction fee is also Rs 10 per crore active side of the transaction on premium value.

"Trading members of currency derivative segment may please note that exchange shall levy the transaction charge of Rs 10/- per crore flat on both active and passive side of trades done in Currency derivative contracts with effect from April 1, 2016," BSE said in a circular.

For currency futures contracts, transaction charges will be applicable on the value of the transactions (price X quantity), while currency options contracts, transaction charges will be applicable on the premium value (premium X quantity) at the time of trading. BSE had launched its currency derivatives platform in November 2013 and did not levy any transaction fees for trades done on this segment for almost a year.

However, since December 2014 it began charging for currency derivatives. It levied a Rs two per crore of turnover  for two months from December 1, 2014 to January 31, 2015, and  then increased to Rs 4 for the next two months. BSE further hiked the charge to Rs 6 from April 1, 2015 for two months followed by Rs 8 for next two months.

Since October 1, 2015, the exchange has been levying a transaction fee of Rs 10 on the currency derivative trades. The stock exchange had recorded a turnover of Rs 19.08 lakh crore from currency derivative trades in 2014-15. Its turnover during first nine months of the current fiscal is is  Rs 19.21 lakh crore.