NSE cuts transaction charges by 1%, plans exit from non-core 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 per cent, effective April 1, 2024.

The said reduction will have an estimated impact of ₹130 crore p.a. on the revenue from transaction charges of NSE. The transaction charges are levied slab-wise 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 per cent increase in transaction charges on equity cash and derivatives segment. In January 2021, the charges were increased by 6 per cent, partly to augment the investor protection fund trust.

Nod for sale

The Board has also approved the sale of the digital technology business of NSEIT, a wholly-owned step-down subsidiary of NSE along with NSEIT’s subsidiaries NSEIT US, Aujas Cybersecurity, CXIO Technologies to Investcorp, a US-based leading 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 year-to-date 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 non-core 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.