True-to-Label on WebNotes

BSE revised transaction charges and the true-to-label circular

Sat, 20 Jun 2026 00:00:00 +0000

BSE revised transaction charges are the equity-cash and derivatives transaction fees the Bombay Stock Exchange has levied since 1 October 2024, when it replaced its volume-based slab pricing with a uniform per-unit charge to comply with SEBI’s true-to-label circular. The transaction charge is the fee the exchange takes on every trade it clears, passed through to the client by the broker. After the revision it is the same per unit of turnover for every broker, regardless of how much that broker trades.

SEBI True-to-Label charges October 2024

Mon, 18 May 2026 00:00:00 +0000

The True-to-Label charges framework effective from 1 October 2024 requires NSE, BSE, and other exchanges to charge participants based on actual notional turnover rather than discounted bundled rates. The framework eliminated volume-based exchange discounts that benefited high-volume brokers (and were typically passed on to retail clients only partially), aligning retail charges more accurately with the underlying cost.

What “True-to-Label” means

The label on a charge should match what the participant pays. Pre-October 2024: