Calcutta, Nov. 11: The Bombay Stock Exchange (BSE) has cut membership fee for its derivatives segment by Rs 2 lakh. Membership of the exchange’s futures and options segment now costs only Rs 3 lakh.
BSE’s 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 it’s 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.
“BSE’s charges and fees are not even comparable with NSE’s — even for an existing cash market member — but the problem is derivatives trading on BSE hasn’t taken off as yet,” said a senior broker.
Daily turnover of the BSE’s derivatives segment rarely exceeds Rs 50 crore, whereas on the NSE, it’s approaching Rs 10,000 crore. NSE’s futures and options segment today registered a turnover of Rs 8,770 crore. BSE’s 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.