Description
NSE rolls back the enhanced Trading Member contributions to NSE IPFT corpus to pre-April 2023 levels and revises transaction charges accordingly, with no net change in overall outflow for Trading Members across Cash Market, Equity Futures, and Equity Options segments.
Summary
NSE has revised its transaction charges and NSE Investor Protection Fund Trust (IPFT) contribution structure for Trading Members, effective March 1, 2026. Since the NSE IPFT corpus has been replenished to adequate levels, the Exchange is rolling back the enhanced IPFT contributions introduced in April 2023, with a corresponding revision in transaction charges to ensure the total outflow for Trading Members remains unchanged.
Key Points
- NSE IPFT corpus is now adequately replenished, prompting the rollback of the April 2023 contribution increase.
- Transaction charges are being revised to offset the reduction in IPFT contributions, keeping net outflow neutral.
- The revised structure applies to Cash Market, Equity Futures, and Equity Options (on premium) segments.
- No overall change in the total outflow for Trading Members — the split between transaction charges and IPFT contribution changes, not the total.
- Applicable to all Trading Members in Cash Market Segment and Equity Derivatives Segment.
Regulatory Changes
The revision is the third structural change to NSE transaction charges in recent years:
- March 2023 (NSE/FA/56129): Charges reduced; IPFT contributions enhanced by Rs. 9.99/crore (cash/futures) and Rs. 49.99/crore (options premium).
- September 2024 (NSE/FA/64323): Charges revised to a uniform flat structure per SEBI circular SEBI/HO/MRD/TPD-1/P/CIR/2024/92 dated July 1, 2024, mandating equal charges for all members (abolishing volume-based slabs).
- February 2026 (NSE/FA/73061, this circular): IPFT contributions rolled back to pre-April 2023 levels; transaction charges revised upward to compensate.
Revised Charge Structure (Rs. per crore of Traded Value, each side)
| Segment | Transaction Charges | IPFT Contribution | Total Outflow |
|---|---|---|---|
| Cash Market | Rs. 306.99 | Rs. 0.01 | Rs. 307 |
| Equity Futures | Rs. 182.99 | Rs. 0.01 | Rs. 183 |
| Equity Options (on premium) | Rs. 3,552.00 | Rs. 1.00 | Rs. 3,553 |
Previous (existing) structure had lower transaction charges offset by higher IPFT contributions of Rs. 10, Rs. 10, and Rs. 50 per crore respectively.
Compliance Requirements
- Trading Members should update their internal accounting and billing systems to reflect the new split between transaction charges and IPFT contributions effective March 1, 2026.
- No additional regulatory filings are required; this is an Exchange-initiated revision.
- Members should note the revised line-item breakdown (higher transaction charges, near-zero IPFT contribution) when reconciling exchange bills.
Important Dates
- February 27, 2026: Circular issued.
- March 1, 2026: Revised transaction charges and IPFT contributions come into effect.
Impact Assessment
For Trading Members: Neutral net financial impact — total outflow per crore of traded value is unchanged at Rs. 307 (Cash), Rs. 183 (Equity Futures), and Rs. 3,553 (Equity Options on premium). The change is cosmetic in terms of P&L but affects how charges are classified in member books.
For NSE IPFT: The contribution from trading members drops to near-zero (Rs. 0.01–1.00 per crore), reflecting the adequacy of the current corpus. The Exchange retains the bulk of the charge as transaction revenue.
Operational Impact: Low. Systems that segregate transaction charges from IPFT contributions in their reconciliation processes will need updating. The effective date of March 1, 2026 provides a short lead time (2 days from issuance).
Impact Justification
Affects all trading members in Cash Market and Equity Derivatives segments through a structural rebalancing of transaction charges vs. IPFT contributions, though net outflow remains unchanged at Rs. 307, Rs. 183, and Rs. 3,553 per crore respectively.