The Bombay Stock Exchange (BSE) has increased transaction charges by 50 paise to Rs 3 per Rs 1 lakh of gross turnover, and decided to maintain the minimum transaction charge at Rs 50,000 per annum against its earlier proposal to double it from April 2001.
BSE's board had decided to double the minimum transaction charges at Rs 1 lakh per annum from April 2001 in a meeting held during January 2001.
This is second time in a row that the BSE has decided to continue with lower minimum transaction fees.
The exchange authorities had planned to raise it from October 2000 itself, but members had persuaded the exchange to continue with the Rs 50,000 per annum charge for six months between October 2000 and March 2001.
The minimum transaction charges are collected on a half-yearly basis. The decision by the BSE to increase the minimum transaction charge was seen as demoralising for the members, especially after the reduction in the minimum transaction charges on the National Stock Exchange (NSE) from January 1, 2001.
The revised charges on the NSE were designed to substantially reduce the transaction cost.
While the revised minimum transaction charge was maintained at Rs 1 lakh of the trade value (each side, up to Rs 100 crore), the reduction was implemented in incremental trade value.
The members of BSE had protested against the hike at the bourse's extraordinary general meeting held on April 19, 2001, and the exchange board in its recent meeting decided to concede to the request and maintain lower fees.
