NSE cuts fee on options, currency derivatives to deepen market
MUMBAI: Looking to bring in more liquidity in derivatives, leading stock exchange NSE has significantly lowered transaction charges in equity options and currency derivatives.
Trading members will now have to pay a flat Rs 2,500 transaction fee for a month on a billable monthly turnover or premium value of up to Rs 3 crore in equity options.
The move follows changes in transaction charges by rival BSE, which has started charging on per trade basis in certain segments. Besides, the BSE has been gaining market share in the currency derivatives space.
Furthermore, the NSE has introduced a slab-based structure for turnover above Rs 3 crore. Under the structure, transaction charges per lakh of premium value will fall as turnover increases. So far, the NSE levied a transaction fee of Rs 5,000 on billable turnover of up to Rs 1 crore in equity options and gave incentives for trades over Rs 1 crore.
At the same time, the NSE has also lowered transaction charges for currency derivatives trades and has put in place a slab-based mechanism, a move which will help reduce trading and hedging costs for various entities, including small and medium enterprises.
The fee starts at Rs 110 per crore of traded value for incremental monthly turnover of up to Rs 1,000 crore in the currency derivatives and comes down as turnover rises.
The transaction charges for currency derivatives had been linked to traded value and compliance points.
The NSE’S move, which was announced through separate circulars, is based on market feedback and is expected to benefit small and big market players as well as encourage more investor participation.
“The reduction in the transactions charges in response to feedback from markets will encourage more participation and is very inclusive as it would benefit both small and large investors and members,” an NSE spokesperson said.
“This reduction will make Indian markets more competitive and would encourage wider participation, thereby infusing more liquidity.”
As per the new slab structure in the equity options segment, incremental billable monthly turnover or premium value between Rs 3 crore and Rs 100 crore will attract Rs 50 per lakh as transaction charges.
Similarly, transaction charges will be Rs 47.50 for turnover between Rs 100 crore and Rs 750 crore, Rs 42.50 for Rs 750-1,500 crore, Rs 37.50 for Rs 1,500-2,000 crore and Rs 30 for over Rs 2,000 crore.
Under the slab-based mechanism for currency futures, incremental monthly turnover of up to Rs 1,000 crore will attract Rs 110 for every one crore of traded value.
The transaction charges for currency futures range from Rs 110 to as low as Rs 30 as the trading value goes up. NEW DELHI: The Finance Ministry may request capital market regulator Sebi to extend the August deadline for PSBS to meet 25 per cent public float norm as it mulls various options to pare government stake in state-run banks.
There are seven public sector banks (PSBS), including United Bank of India, Indian Bank, Bank of Maharashtra and Central Bank of India, where the government holding is above 75 per cent.
Post second round of capital infusion in March, the government stake in some more banks could go beyond 75 per cent. As per guidelines of the Securities and Exchange Board of India (Sebi), government stake in PSUS should be 75 per cent or less by August 2017.
“Effort is there to meet the Sebi s public float guidelines but in case some banks are unable due to market condition, then we will approach the regulator seeking exemption from minimum public shareholding (MPS) requirement of 25 per cent in those cases,” a Finance Ministry official said.
There are still five months to go and various options are on the table, like public offer and selling stake to LIC, the official added.
There are four PSU banks where government holding is more than 80 per cent, while it is between 75-80 per cent in three lenders as of December 2016.
Government holding in United Bank of India is at 88.72 per cent, followed by Indian Bank (82.10), Bank of Maharashtra (81.61), Central Bank of India (81.28), Punjab and Sind Bank (79.62), Indian Overseas Bank (79.56) and Uco Bank (76.67). NEW DELHI: Mother Dairy’s turnover grew by 9 per cent in the last fiscal to about Rs 7,850 crore helped by better sales in value-added dairy products and edible oils businesses.
Mother Dairy, a whollyowned subsidiary of the National Dairy Development Board (NDDB), had posted a turnover of Rs 7,186 crore in 2015-16.
“Our turnover has increased by over 9 per cent to about Rs 7,850 crore during 2016-17 fiscal. In value-added dairy products and edible oils, our growth was nearly 20 per cent,” Mother Dairy Managing Director S Nagarajan said.
The company sells valueadded dairy products like ice cream, curd, paneer and ghee.
However, Nagarajan said the company’s sales in fruits and vegetables segment remained muted. About 75-80 per cent of the company’s sales come from dairy business, he said. The edible oil business contributes about Rs 1,000 crore, while fruits and vegetables add about Rs 600-700 crore. Mother Dairy plans to launch new flavours of icecream soon as it targets higher growth this fiscal.