NSE transaction charges: The National Stock Exchange has approved a reduction in overall transaction charges across its cash equity and equity derivatives segments. The decision, made during the board meeting held on March 11, 2024, will see a 1 per cent reduction in transaction charges, effective from April 1, 2024.

According to a statement by NSE, this reduction is expected to have a significant impact, slashing the company's revenue from transaction charges by approximately Rs 130 crore annually.

Last year, NSE faced criticism after implementing a 6 per cent increase in transaction charges in the equity cash and derivatives segment. However, in a reversal of that decision, the exchange has now opted to lower these charges to benefit traders and investors.

The move comes as part of NSE's ongoing efforts to improve market accessibility and foster a conducive trading environment. By reducing transaction costs, NSE aims to encourage higher participation in trading activities and attract more investors to the stock market.

The decision has already started to reverberate across the market, with shares of the Bombay Stock Exchange (BSE) witnessing a decline in response. The BSE on Tuesday dipped 6.5 per cent to an intraday low of Rs 2060 apiece.

With the reduction in transaction charges set to come into effect next month, traders and investors can look forward to a more cost-effective trading experience on NSE's cash and derivative segments.