Stock market changes effective today: 3 things investors need to know

Three crucial changes are now in effect in the stock markets as of today, October 1, 2024. Investors must be aware of these adjustments to navigate potential challenges and seize new opportunities.
The changes include revised transaction charges by stock exchanges, an increase in Securities Transaction Tax (STT), and new taxation rules governing share buybacks.
Starting today, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have implemented new transaction fees for cash, futures, and options trading.
This shift follows a directive from the Securities and Exchange Board of India (Sebi), which mandated a uniform flat fee structure for all members of market infrastructure institutions.
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.
Meanwhile, transaction charges for other contracts in this segment remain unchanged.
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.
On the NSE, the cash market transaction fee is now set at Rs 2.97 per lakh of traded value. For equity futures, the fee will be Rs 1.73 per lakh of traded value, while equity options will attract a fee of Rs 35.03 per lakh of premium value.
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.
This uniform fee structure aims to eliminate disparities that existed under the previous slab-wise system, which often favored larger players with higher trading volumes.
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.
Effective today, the STT on futures has risen from 0.0125% to 0.02%, while options trading has increased from 0.0625% to 0.1%.
Analysts suggest that this hike may dampen trading volumes and depth in the market, potentially affecting revenues for exchanges and Sebi.
The government’s objective is clear: to temper excessive speculation that has characterized retail derivative trading in recent years.
Another significant change effective today is the taxation of income from share buybacks, which will now be treated as dividend income for shareholders.
This shift means that shareholders will be taxed according to their applicable income tax slabs when companies repurchase their shares.
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.
This change is designed to allow companies greater flexibility in utilizing funds for growth initiatives instead of being constrained by tax liabilities associated with buybacks.