Nse To Pare Demat Delivery Charge

The National Stock Exchange (NSE) has decided to levy a lower transaction charge for demat delivery in order to encourage trading in that segment.

The exchange has decided to provide credit at 0.004 per cent of the value of demat deliveries/receipts in transaction charges for trades carried out in the normal market segment if the deliveries are received in demat form. This will reduce the charges from 0.009 to 0.005 per cent. The reduction will be effective from April 8, 1998. The exchange has also decided to revise charges for bad delivery unrectified from 0.1 per cent to 0.05 per cent per day, short delivery of securities from 0.1 per cent to 0.05 per cent per day and failure to pay funds including valuation debits, margin shortages and utilisation fund from 0.15 per cent to 0.09 per cent. These will be effective from April 1, 1998.

 

Trading members have now been allowed to make an early pay-in of funds and securities if the value is more than 1 crore (as against Rs 3 crore earlier).

The NSE has also has decided to slash the security deposit payable by the trading members in respect of the Vsats to Rs 3.25 lakh per Vsat to Rs 5 lakh per Vsat with effect from March 18.

The proposal was approved by NSE's board of directors at a meeting held on March 17. According to an official release, the annual recovery will be made on an yearly basis instead of calling for additional deposits. This will be done every October.

Further, it has decided to alter the trading hours on Wednesdays (the auction days) following such a demand made by the members. The trading hours have been revised from 9:30 am to 4:00 pm.

Meanwhile, the NSE will kickstart trading in index futures within 30 days of Sebi granting approval to the L C Gupta Committee report. NSE deputy managing director Ravi Narain said that it is optimistic about introducing index futures since the hardware and software systems required to commence index futures have been tested and the risk containment mechanism and disaster recovery unit set up in Pune are completely geared up to meet any eventuality.

The hardware has been augmented to cater to much larger volumes than the present cash market. "We have also created the software to meet the margining, clearing and settlement requirements," Narain said.

He, however, ruled out the setting up of a separate derivative exchange.