BSE announces cut in transaction fee; applicable from October 7

The Bombay Stock Exchange (BSE), the oldest stock exchange of India, has announced a cut in transaction fee in the cash segment of the market from October 7.

From Wednesday, the cost of transaction in BSE’s cash segment will be Rs 3.25 per lakh, against Rs 3.50 that the exchange charges now. In addition, for passive orders, the transaction charge will be slashed from Rs 3.5 per lakh to Rs 2.25 per Rs 1 lakh.

Further, the bourse stated in a communiqué that 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.

It should be noted that latest move was taken by BSE to primarily boost its trading volumes without entering into a price war with arch rival NSE.

Earlier this week, National Stock Exchange (NSE), India’s largest bourse had announced similar cut from October 1.

Commenting on latest move, Madhu Kannan, Managing Director and Chief Executive Officer, BSE said, “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.”

Presently, transaction fees charged by bourses 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.

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