Market regulator SEBI has issued a new circular that will make the Bombay Stock Exchange (BSE)
and National Stock Exchange (NSE) act as backup platforms for each other in case of technical issues.
Starting from April 1, 2024, if there’s a disruption in trading on one exchange, it will automatically switch to the other to avoid any loss of trading time.
How the New Rule Works
The new rule outlines the following steps:
1) If there is a technical problem on BSE, the shares listed on BSE will be traded on NSE.
2) If NSE faces a technical issue, the shares listed on NSE will be traded on BSE.
Both exchanges are required to prepare a Standard Operating Procedure (SOP) within 60 days to implement this rule effectively.
Backup Plans for Futures and Options (F&O) Trading
The circular also states that both NSE and BSE must create a reserve list of each other’s listed shares.
This ensures that Futures and Options (F&O) trading continues smoothly in case of any technical disruption.
If there’s an issue on one exchange, the affected exchange must inform the other within 75 minutes, allowing a quick switch.
Updated Transaction Fees
SEBI has also updated the transaction fees for cash and derivatives trading on both exchanges:
NSE Fees
Cash market: ₹2.97 per ₹1 lakh traded.
Equity derivatives (Futures): ₹1.73 per ₹1 lakh traded.
Equity derivatives (Options): ₹35.03 per ₹1 lakh premium.
Currency derivatives: ₹0.35 per ₹1 lakh traded.
Currency and Interest Rate Options: ₹31.1 per ₹1 lakh premium.
BSE Fees
Currency derivatives (Futures): ₹45 per ₹1 crore turnover.
Currency derivatives (Options): ₹100 per ₹1 crore turnover.
These fee changes aim to improve efficiency and cost management for market participants.
