BSE cuts transaction fee in cash from Oct 7

Brings it down to Rs 3.25 from Rs 3.50 per Rs 1 lakh.

Matching an earlier move by its rival, the National Stock Exchange (NSE), the Bombay Stock Exchange (BSE) today announced a cut in transaction fee in the cash segment of the market from October 7.

The NSE had announced similar cut from October 1.

From October 7, the cost of transaction in BSE’s cash segment will be Rs 3.25 per lakh, compared to Rs 3.50 that the exchange charges now. This is in line with what NSE charges.

While BSE has a negligible market share in the equity derivatives segment, which is dominated by NSE, it has managed to retain close to 30 per cent market share in the cash segment.

In addition, for passive orders, defined as those already existing in the order book at the time of matching (trade taking place), the transaction charge will be reduced from Rs 3.5 per lakh to Rs 2.25 per Rs 1 lakh. The charge will include the current contribution of Rs. 0.01 each per every Rs 1 lakh to the Trade Guarantee Fund and the Investor Protection Fund.

“With the new pricing framework coming into force from October 7, we are expecting more order flow from Indian and international investors. This shows our commitment to the members that we will continue to strive to provide the most efficient trading platform while bringing down the cost of transactions considerably,” said BSE Managing Director and Chief Executive Officer Madhu Kannan.

The transaction fees charged by stock exchanges in India are the lowest in the world. However, the cost of trading in the country is high due to other statutory charges such as securities transaction tax and stamp duty.