Shares of Bombay Stock Exchange (BSE) were on the rise on Monday after the company raised transaction charges for the derivatives segment.

What Happened: BSE increased the transaction charges for Sensex and Bankex options to ₹3,250 per crore of premium turnover. Premium turnover is the total premium paid for all the contracts traded in a day.

Suppose a trader buys a derivative with a lot size of 50 and pays a premium of ₹200 per lot, the premium turnover will be ₹10,000 (50 multiplied by 200).

BSE has not changed the transaction charges for other contracts in index futures and stock futures. For Sensex 50 options and stock options, there is a transaction charge of ₹500 per crore of premium turnover value.

The new charges will come into effect on October 1. 

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NSE has also increased transaction charges for derivatives trading. In the equity futures segment, ₹1.73 per lakh will be applied per lakh of traded value for each side in the transaction.

In the cash market, ₹2.97 will be charged per lakh of traded value in each side while in equity options, ₹35.03 per lakh will be levied on the premium value from buyers and sellers.

The stock exchanges are increasing transaction costs after market regulator SEBI came out with a “true to label” policy which prompts market infrastructure institutions (MII) like stock exchanges to charge all players equally rather than a volume-based slab structure.

Price Action: Shares of BSE fell from an intraday high of ₹3,741.45 but were trading up 0.14% at ₹3651.

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