NSE To Waive Off Transaction Charge In F&O Trade On Nifty Next 50 For Six Months

The National Stock Exchange has decided not to levy transaction charges for the futures and options trade in its recently introduced Nifty Next 50 index for six months.

"In order to encourage active participants in Futures and Options contracts on the Nifty Next 50 Index, it has been decided that no transaction charges will be levied on the trades done in F&O contracts on Nifty Next 50 Index from April 24 (product launch date) till Oct. 31," the exchange said in a circular on Tuesday.

The Nifty Next 50 will represent the space between the Nifty 50, comprising top large and liquid stocks and the Nifty Midcap Select, comprising top large and liquid mid-capitalised stocks.

The bourse will offer three serial monthly index futures and index options contract cycles and the cash-settled derivatives contracts will expire on the last Friday of the expiry month, it said in a circular last week.

The Nifty Next 50 represents 50 companies from the Nifty 100, after excluding the Nifty 50 companies. As of March, the index had top sector representation from the financial services sector, with 23.76% weightage, followed by the capital goods sector, with 11.91%, and consumer services, with 11.57%.

The market capitalisation of index constituents stands at Rs 70 trillion, representing about 18% of the total market capital of the stocks listed on the NSE as of March 29.

In March, the NSE announced a reduction in overall transaction charges across cash equity and equity derivatives segments/products by 1%, with effect from April 1.