Revision of transaction charges by the stock exchanges
Summary
The circular advises stock exchanges to ensure that revised transaction charges do not compromise system capacity or risk management protocols. It mandates that such charges must be applied uniformly, fairly, and transparently without favoring specific investors or encouraging artificial demand. The directive requires exchanges to notify member brokers and disseminate these provisions on their websites.
Text
Stock exchanges, while revising such transaction charges, are advised to ensure that:
The stock exchange system is capable of handling additional load.
It does not affect the existing risk management system.
It does not favour selective trades or selective category of investor.
It does not encourage generation of artificial demand.
It does not result in any market irregularities.
It is uniformly applied to trades of similar nature.
It is imposed in fair and transparent manner.
The Stock Exchanges are also advised to bring the provisions of this circular to the notice of the member brokers/clearing members of the Exchange and also to disseminate the same on the website.
This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Revision of transaction charges by the stock exchanges. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.