Starting today, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have implemented new transaction fees for cash, futures, and options trading.

For instance, the BSE has adjusted its transaction fees for Sensex and Bankex options contracts in the equity derivatives segment to Rs 3,250 per crore of premium turnover.

Specifically, BSE will charge Rs 500 per crore of premium turnover for Sensex 50 options and stock options, while index and stock futures will incur no transaction fee.

In the currency derivatives segment, futures will cost Rs 0.35 per lakh of traded value, with options incurring a fee of Rs 31.10 per lakh of premium value.

In a move aimed at curbing speculative trading in the rapidly growing derivatives market, Finance Minister Nirmala Sitharaman announced an increase in STT on Futures & Options trading earlier this year.

Analysts suggest that this hike may dampen trading volumes and depth in the market, potentially affecting revenues for exchanges and Sebi.

Another significant change effective today is the taxation of income from share buybacks, which will now be treated as dividend income for shareholders.

Historically viewed as a tax-efficient method for returning cash to investors, share buybacks are now subject to increased tax burdens on shareholders rather than corporations.