NSE clarifies the Brokerage, Statutory & Regulatory Levies

Aug 13, 2022 | by TeamLease RegTech Legal Research Team

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Secretarial ComplianceThe National Stock Exchange (NSE) on August 12, 2022, provided a clarification on the Brokerage, Statutory & Regulatory Levies to be charged by the Members.

“Option contracts –  As per circular no NSE/F&O/0098/2005 (download ref no. 5 78) dated 30-Mar-05, and Circular no. NSE/INSP/2006/56 download ref no NSE/INSP/8338 dated 05-Jan-07 the trading member shall charge brokerage for option contracts on the premium amount at which the option contract was bought or sold and not on the strike price of the option contract. It is hereby clarified that brokerage on options contracts shall not exceed 2.5% of the premium amount or Rs.100/- (per lot) whichever is higher”.

It has come to the notice of the Exchange that the aforesaid provision mentioned with respect to brokerage applicable on Options contracts is being interpreted to be applicable only for the Futures & Options segment and not for the Currency Derivatives segment. 

In view of the same, it is reiterated that aforesaid brokerage rates are applicable on Options contracts in the Futures & Options segment as well as the Currency Derivatives Segment and accordingly, the brokerage on options contracts in the Futures & Options segment or Currency Derivatives segment shall not exceed 2.5% of the premium amount or Rs.100/- (per lot) whichever is higher.

[Notification No. NSE/INSP/53297]


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