The Hindu Business Line : BSE raises transaction charges by 33 pc

THE Bombay Stock Exchange (BSE) has raised the transaction charges for the cash market segment by 33 per cent from April 1. The hike has come at a time when stockbrokers are facing the heat of stamp duty on non-delivery transaction and the SEBI turnover fee.

As per the revised fee structure announced today, the BSE will charge its members Rs 4 per Rs 1 lakh of gross turnover compared to the current charges of Rs 3 per Rs 1 lakh for all group of securities.

Transaction charge is the money paid by a broker- member to the exchanges on the basis of the turnover. This is a key source of income for the exchange other than the listing fee. However, the contribution towards Trade Guarantee Fund and Investor Protection Fund would continue to be recovered at the same rate, a circular by the BSE to its members said.

After the hike, the BSE transaction charges are at par with the NSE, brokers said.

Some brokers, however, said the exchange has been regularly investing in the technology to upgrade the trading segment and the hike is reasonable. They said that even after this hike, the total transaction cost on the BSE is lower to NSE. Their argument is that the NSE charges for V-SAT are higher than the BSE and also that the trading members of the exchange have paid an interest-free deposit of Rs 50 lakh to the NSE while the BSE does not take deposit from its members.

NSE charges for V-SAT surrenders

Meanwhile, the NSE has informed its members that if they surrender their V-SAT to the exchange they have to pay between Rs 90,000 and Rs 2 lakh for varying periods.

In a notice to its members today, the NSE said if a trading member intends to surrender V-SAT they have to pay Rs 2 lakh if the V-SAT was activated after April 1999. In case it was activated between April 1996 and March 1999, the surrender charges would be Rs 1.6 lakh and if the activation was done between April 1994 and March 1996 than the charges will be Rs 90,000, the notice said.

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