Report flags BSE’s ‘high’ transaction fee regime

New Delhi: An analysis of transaction charges at the Bombay Stock Exchange (BSE) has flagged concerns over pricing structures and regulatory compliance in India’s capital markets.

The report highlights a divergence in fee models between the BSE and the National Stock Exchange (NSE), particularly after the Securities and Exchange Board of India’s (SEBI) “True to Label” circular came into effect on October 1, 2024. The circular mandates uniform and transparent charges by Market Infrastructure Institutions (MIIs). While the NSE adopted a flat-fee structure, the BSE continues with differential pricing across scrip groups.

According to the analysis, over 5,000 listed companies on the BSE are divided into multiple groups with varying transaction charges. Group A and B scrips, comprising around 1,500 high-cap and standard companies, attract a charge of Rs 3.75 per Rs 1 lakh traded. In contrast, Group X/XT stocks, largely exclusive to the BSE and numbering over 2,000, are charged Rs 100 per lakh. Group Z/ZP and SS/ST categories, including non-compliant and SME stocks, face charges of Rs 1,000 per lakh.

The report notes that in Q3 FY26, the BSE recorded transaction-based revenue of Rs 952.6 crore, marking an 86 per cent year-on-year rise. It states that while derivatives contributed to growth, a significant share of cash-segment revenue is linked to higher charges on exclusive and penalised groups.

The document also references SEBI’s 2025 Inter-Exchange Business Continuity Framework, which permits trading of BSE-exclusive stocks on the NSE during outages. It argues that this framework reduces the traditional rationale for dual listings and may influence listing decisions by companies evaluating liquidity, compliance costs and transaction charges.