NSE Cuts Trading Fees Across Cash And Derivatives Segments By 1%

The National Stock Exchange (NSE) has announced a cut in trading fees. Starting April 1, 2024, costs for buying and selling in both the cash and futures markets will drop by 1%.

Why it matters: This decision, made during Monday’s board meeting, aims to make trading more affordable, potentially impacting NSE’s earnings by about ₹130 crore annually.

This isn’t the first time NSE has adjusted its fee structure. Just last year, it reversed a 6% hike in transaction charges introduced in January 2023, a step initially taken to bolster funds designed to protect investors from broker defaults.

Focussing on core operations: The NSE also declared its plans to shed its non-core ventures, specifically in the technology and education spheres. This decision sparked a flurry of interest, drawing attention from a whopping 60 potential buyers, out of which seven stepped forward with non-binding offers.

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As the process gained momentum, it boiled down to two contenders who threw their final offers into the ring, leading to the highest bidder securing a spot for exclusive talks. Avendus led the charge as the transaction adviser, with Deloitte backing up the financial and tax due diligence.

Deloitte also pitched in as the tax adviser, alongside Indus Law, which handled the legalities. The grand finale of this divestment saga is slated for March 31, 2024, marking a new chapter for NSE as it trims its portfolio to focus more on its core operations.

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