MCX Revised Transaction Fee For F&O After SEBI Guidelines

The Multi Commodity Exchange of India (MCX) has announced a significant change in its transaction fees for futures and options contracts, set to take effect next month. The new fee structure, which replaces the previous tiered system, is in direct response to guidelines issued by the Securities and Exchange Board of India (SEBI).

Under the revised fee structure, futures contracts will incur a transaction fee of ₹2.10 per lakh of turnover, while options contracts will be subject to a fee of ₹41.80 per lakh of premium turnover. This shift to a fixed fee structure is a direct result of SEBI’s directive, which mandates that exchanges adopt a “True to Label” principle. This principle requires that the fees charged to clients by members must accurately reflect the fees collected by the exchange itself, promoting greater transparency and fairness in the market.

SEBI had previously expressed concerns about the existing slab charge system used by some Market Infrastructure Institutions (MIIs), including MCX. The regulator noted that this system could lead to clients being charged more than what MIIs actually receive, potentially creating transparency issues and an uneven playing field for market participants.

In response to these concerns, SEBI urged MIIs to ensure that the charges billed to clients align with the amounts they collect from members. Furthermore, the regulator called for a uniform charge structure, moving away from the slab-based approach, to potentially reduce costs for clients.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.