Exchange Transaction Charges

Exchange Transaction Charges are fees levied by stock exchanges (like NSE, BSE, MCX) on every trade executed through them. These charges are collected by the broker from investors/traders and passed on to the respective exchange.

They are applied to the turnover value of trades (total buy/sell value) and vary depending on:

• The type of exchange (NSE, BSE, MCX, etc.)
• The market segment (Equity Delivery, Intraday, Futures & Options, Commodities, Currency, etc.)

Key Aspects of Exchange Transaction Charges

1. Who Levies the Charge?

• Levied directly by the exchange (not the broker).
• The broker only collects it from the client and remits it to the exchange.

2. How Is It Calculated?

• Based on the trade turnover value.
• Example: NSE Equity Delivery segment = 0.00345% of turnover.
• Formula: Exchange Transaction Charge= Turnover×Applicable Rate

3. Different Rates for Different Segments

• Equity Delivery, Intraday, Futures, Options, Currency, Commodities all have different charge rates.
• NSE and BSE may have slightly different rates for the same segment.

4. Example

• Buy 100 shares of XYZ at ₹200 each = Turnover ₹20,000.
• Exchange Transaction Charge (say 0.00345%) = ₹20,000 × 0.00345% = ₹0.69.

5. Why It Exists?

• Covers the exchange’s cost of providing the trading platform, clearing, and settlement infrastructure.
• Ensures smooth functioning of the securities market.