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No transaction levy on 2 NSE derivative contracts till Aug-end

Last Updated: Monday, August 6, 2012 - 21:43

Mumbai: The National Stock Exchange Monday said it will not levy any transaction charges on its derivative contracts on benchmark US indices S&P 500 and Dow Jones Industrial Average (DJIA) till the month end.

NSE had launched these two derivatives contracts in August last year in a bid to help Indian investors to bet on the world's most influential stock markets.

At the time of the launch, NSE had decided to waive off transaction charges on the trades done in these contracts.

In a circular issued today, NSE said "waiver on transaction charges on the trades done in above mentioned futures and options contracts has been extended till August 31, 2012."

Normal transaction charges, as applicable for other futures and options contracts, shall be levied on these global indices contracts after August 31, 2012.

"Derivative contracts on these global indices will provide Indian investors easy access to US markets in Indian market hours, without taking any currency risk," NSE Managing Director and Chief Executive Ravi Narain had said at the time of the launch last year.

The rupee denominated derivative contracts on S&P and the DJIA introduced by NSE would provide Indian investors with easier access to gain exposure to the US equity market.

All the members of the equity derivatives segment of NSE shall be able to trade this product for themselves and their clients, through their existing trading, clearing and risk management infrastructure.

Sebi had released the regulatory framework for such products in January 2011.


First Published: Monday, August 6, 2012 - 21:43
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