The National Stock Exchange (NSE) today announced a reduction in connectivity charges and waiver of transaction charges for investors from rural and semi-urban areas to encourage their participation in the equity market.
The move to reduce charges will make it more cost-effective for common investors, especially those located in semi-urban and rural areas, the NSE said in a statement here.
Currently, members taking leased-line connectivity from rural and semi-urban areas to connect to the exchange have to pay an amount of Rs 1 lakh annually on a recurring basis.
Following today's announcement, the exchange has decided to waive the transaction charges pertaining to trade generated from these leased lines to the extent of the annual leased line connectivity cost of Rs 1 lakh, it said.
The move aims to facilitate establishment of trading terminals in these semi-urban and rural areas at a reasonable cost.
It is expected that there are around 300 leased lines in these areas which are used by members and they will benefit from the move. It is also expected to benefit a large number of investors in these regions.
The incentive will be applicable to all the trading volumes generated through these leased lines with effect from April 1, 2010, the NSE said.
In its continued endeavour to encourage investors from semi-urban and rural areas and to facilitate members to set up infrastructure in those regions at a reasonable cost, the NSE has brought down the infrastructure costs for members as well.
The immediate benefit of this initiative will be availed by NSE members who are connected to the POPS (points of presence) at Rajkot, Jaipur and Kochi. Against the existing connectivity charges of Rs 2 lakh to Rs 2.50 lakh per leased line in these regions, the exchange has revised the charges to Rs 1 lakh per annum.
"These announcements are in tune with our thrust to make high quality infrastructure affordable beyond the metros and to encourage market access from these centres," NSE Joint Managing Director Chitra Ramakrishna said.
