NSE to cut transaction charges by 1%, exit noncore businesses
The board of National Stock Exchange (NSE), at its meeting held on March 11, approved the reduction in overall transaction charges across cash equity and equity derivatives segments by 1%, effective April 1, 2024.
The said reduction will have an estimated impact of ₹130 crore per annum on the revenue from transaction charges of NSE. The transaction charges are levied slabwise depending on the total traded value. The move is expected to benefit investors and brokers, if volumes increase meaningfully.
Last year the bourse had rolled back the 6% increase in transaction charges on equity cash and derivatives segment. In January 2021, the charges were increased by 6%, partly to augment the investor protection fund trust.
The move to cut charges is expected to benefit investors and brokers if volumes increase
Nod for sale
The Board has also approved the sale of the digital technology business of NSEIT, a whollyowned stepdown subsidiary of NSE, along with NSEIT’s subsidiaries NSEIT US, Aujas Cybersecurity, and CXIO Technologies, to Investcorp, a USbased global manager of alternative investments. The expected date of completion of sale is March 31, 2024.
The digital technology business of NSEIT will be sold to Investcorp on a slump sale basis. Its revenue for FY23 and yeartodate December 31, 2023 was ₹242 crore and ₹221 crore, respectively. Net assets as on March 31, 2023 and as on December 31, 2023 were ₹74.58 crore and ₹111.9 crore, respectively.
NSE had decided to exit from its noncore businesses including the technology and education businesses at its Board meeting held on November 5, 2022. Subsequently, the process for divestment was initiated with the bankers preparing a detailed information memorandum and financial model.
(The writer is with The Hindu businessline)