BSE to slash transaction charges in cash equity segment

Mumbai, Oct 5 : The Bombay Stock Exchange today saidit will reduce transaction charges in cash equity segment witheffect from October 7, a move that follows a similar slashingin trading fee by its rival the National Stock Exchange.

The new structure will have two components--one forpassive orders and other for active orders, BSE said in astatement.

For passive orders, transaction charges will be reducedfrom Rs 3.50 per Rs 1,00,000 to Rs 2.25 per Rs 1,00,000 ofgross turnover, whereas for active orders it will be reducedfrom Rs 3.50 per Rs 1,00,000 to Rs 3.25 per Rs 1,00,000 ofgross turnover, it said.

According to the exchange, these transaction charges willinclude current contributions of Rs 0.01 each on Rs 1,00,000of gross turnover to the trade guarantee fund and investorprotection fund.

"With the new pricing framework coming in place fromtomorrow, we are expecting to have more order flow from Indianand international investors," Bombay Stock Exchange (BSE) MD and CEO Madhu Kannan said.

"This also shows our commitment to the members that wewill continue to strive to provide the most efficient tradingplatform while bringing down the cost of transactionsconsiderably," Kannan added.

On September 7, National Stock Exchange had lowered thetransaction charges by about 10 per cent in cash andderivatives segments.

From October 1, the slab for transaction charges in cashsegment on the NSE have been to Rs 3 to Rs 3.25 per Rs 1 lakhfrom Rs 3.5 per per Rs 1 lakh charged earlier.