Stock Market Investors Alert! New Charges, STT Hike & More – Check Key Changes Starting Oct 1

New Delhi: As Indian markets continue their bull run, investors need to be aware of several important changes coming into effect from October 1, 2024. These changes include revised transaction fees by stock exchanges, an increase in the Securities Transaction Tax (STT), and new rules for share buyback taxation. Here is the breakdown of the changes coming into effect tomorrow.

NSE, BSE Revised Transaction Charges

Stock exchanges BSE and NSE have announced revisions to their transaction charges for both cash and futures and options (F&O) segments. These changes follow a directive from SEBI to implement a uniform flat fee structure across all market infrastructure institutions.

• On BSE, transaction charges for options contracts in the Sensex and Bankex equity derivatives will be Rs 3,250 per crore of premium turnover. Fees for other equity derivative contracts remain unchanged.
• NSE has set the transaction fee for the cash market at Rs 2.97 per lakh of traded value. For equity futures, the fee will be Rs 1.73 per lakh of traded value, and for equity options, it will be Rs 35.03 per lakh of premium value.
• In the currency derivatives segment, futures will incur a fee of Rs 0.35 per lakh of traded value, while options, including interest rate options, will cost Rs 31.10 per lakh of premium value.

Hike in STT

Earlier this year, Finance Minister Nirmala Sitharaman announced a hike in the STT for futures and options trading, which will also come into effect from October 1.

– Futures trading will now have an STT of 0.02 per cent, up from 0.0125 per cent earlier.

– For options trading, the STT will rise to 0.1 per cent.

New Buyback Taxation

Starting in October, income from share buybacks will be taxed in the hands of shareholders, similar to dividend income. This means that the tax will be applied according to the individual’s applicable income tax slab.