The Telegraph
Since 1st March, 1999
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Fee-cut prop for BSE derivatives

Calcutta, Nov. 11: The Bombay Stock Exchange (BSE) has cut membership fee for its derivatives segment by Rs 2 lakh. Membership of the exchangeís futures and options segment now costs only Rs 3 lakh.

BSEís derivative segment has not quite taken off, and a year ago its management was reported to have even considered closing it down. Instead of shutting down, the bourse chose to cut fees to keep the segment afloat.

The derivatives segment of the National Stock Exchange (NSE), on the other hand, is roaring with activity. Its turnover has surpassed that of the cash market, and itís still going up.

Besides the membership fee, an applicant will have to pay Rs 7.5 lakh in cash and securities towards a refundable deposit. What is more, transaction charges have been brought down to as low as 25 paise per lakh.

ďBSEís charges and fees are not even comparable with NSEís ó even for an existing cash market member ó but the problem is derivatives trading on BSE hasnít taken off as yet,Ē said a senior broker.

Daily turnover of the BSEís derivatives segment rarely exceeds Rs 50 crore, whereas on the NSE, itís approaching Rs 10,000 crore. NSEís futures and options segment today registered a turnover of Rs 8,770 crore. BSEís new rates are applicable for both individual and corporate members. The applicant has to have a minimum net worth of Rs 25 lakh, which is Rs 30 lakh for NSE.

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