MCX Revises Transaction Fees On F&O Contracts After SEBI Mandates Uniform Charge Structure

The Multi Commodity Exchange of India Ltd. announced on Tuesday a revision in the transaction fees that are levied on futures and options contracts.

For futures contracts, MCX has fixed a transaction fee of Rs 2.1 per lakh of turnover value, an exchange filing stated. For the options contract, the fee has been revised to Rs 41.8 per lakh of premium turnover value.

The new rates will come into effect from Oct. 1, 2024, the filing added.

The revision in transaction fees comes over two months after the Securities and Exchange Board of India mandated a uniform flat fee structure for all members of market infrastructure institutions.

The uniform structure would replace varied slab-wise fees based on volume or activity, which are currently charged by various stock exchanges. This change will eliminate advantages based on size or activity level among members.

SEBI, in the directive issued in July, asked the bourses to follow specific principles when setting fees for members like stockbrokers and depository participants, ensuring transparency for end clients.

In accordance with the market regulator's guidelines, MCX said that members "shall ensure that the exchange transaction fees, if recovered from the end client, should be 'True to Label'." This means that the fees levied on the end client by members should not exceed the exact amount as charged by the exchange to the member.

The announcement of the revision in F&O contracts' transaction fees was made by MCX after the market hours.

Shares of the commodity derivatives exchange had settled with a marginal gain of 0.08% at Rs 5,879.35 apiece on the NSE, compared to a marginal rise of 0.1% in the benchmark Nifty 50.