As an incentive to increase trading volumes in the derivatives segment, the Bombay Stock Exchange (BSE) has waived off transaction fees linked to the turnover of the cash segment.
The BSE governing board, at its meeting held on August 4, has decided to do away with the transaction charge (Rs 2.70 per lakh of turnover) in the cash segment for equivalent amount of turnover done in the derivatives segment.
The incentive has been operational from August 6 till further notice. The amount of turnover in the cash market would include trading turnover plus turnover under the borrowing and lending of securities scheme, BSE said in a circular to its members.
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In June BSE had set out a marketing agenda by announcing a reduction in transaction charges and permission for sharing brokerage under the futures and options segments.
The bourse had cut the transaction and clearing charges in case of futures and options contracts to Rs 1.25 and zero, respectively, per side of the contract (after rounding up to the next 10 paise at client level) till September 30.
The reduction in transaction charges is expected to bring down the derivatives transaction cost drastically making it financially feasible for new market players to fulfill their speculative and hedging needs, sources said.
However, these charges would be raised by Rs 5 towards transaction charges and Rs 1 towards clearing charges per side of the contract from October 01.
The exchange has also given permission to brokers in the derivatives segment to share brokerage, commission or any other fee earned by them on a one-time basis or on a regular basis with any person who brings in maximum business, commission or any other fee from such transactions.
This move is aimed at facilitating brokers to woo not only sub-brokers but also large clients.