NSE Investors Disagree Over Derivs Fee

The National Stock Exchange’s domestic institutional shareholders have disagreed on the exchange’s strategy of not charging transaction fees in the currency derivative segment.

The National Stock Exchange’s (NSE) domestic institutional shareholders have disagreed on the exchange’s strategy of not charging transaction fees in the currency derivative segment, Business Standard reports. The shareholders, which together hold around a 39% stake in the NSE, have already raised the issue at the board level.

The shareholders believe that that not charging transaction fees in a fast-growing segment is actually a loss of income for the exchange and in turn, loss for them. The main domestic institutional shareholders in the exchange are LIC with a 10.51% stake, State Bank of India with 10.19%, IDFC with 7.88%, IFCI with 5.55% and Stock Holding Corporation with 5%. The MCX Stock Exchange has filed a petition against NSE, alleging that it was in contravention of India’s competition laws.

Click here for the story from Business Standard.