Bse Lowers Net Trading Charges

The Bombay Stock Exchange has waived the one-time registration fee of Rs 50,000 and halved the license fee from Rs 5,000 to Rs 2,500 per month for its online Internet trading platform: BSEWebX.

The exchange's move is aimed at boosting volumes and helping BSE members to expand their network in a cost-effective manner. The incentives will be extended up to December 31, 2001.

To help members boost their Net trading activity through sub-brokers and branches across the country, the exchange has also waived off the broker administration terminal (BAT) charges of Rs 2,500 per month. The exchange has also reduced transaction charges from Rs 5 to Rs 3 per Rs 1 lakh of gross turnover. However it will be subject to a minimum transaction fee of Rs 150 per registered investor per annum but applicable only from April 2002.

The exchange had received numerous requests for relief on BAT fee so that sub-brokers and branches can participate in BSEWebX along with their investors. With the relief extended on BAT fees, sub brokers/branches will now pay only a 'pay as you use' transaction fee of Rs 3 per lakh of turnover on BSEWebX.

Now that the base systems are up, BSE is implementing payment interfaces for online funds transfer, depository interfaces for online securities transfer, web-based BAT (an essential feature asked for by many members with nation-wide network), value added content, mobile trading through WAP and other features.

BSEWebX was launched on 16th February, 2001 with a view to enable members, their distribution network and investors access a highly seamless trading system at a low cost. The timing of the launch turned out to be adverse with markets going into a tailspin since March.