BSE to waive annual charges for WDM trade

BSE has decided to waive off the annual subscription fee of Rs25,000 for its wholesale debt market (WDM) trading members. At the same time, the bourse has also lowered the net worth requirement drastically from Rs1.5 crore to Rs30 lakh

New Delhi: Bombay Stock Exchange (BSE), India’s oldest stock exchange, is looking to revive its wholesale debt trading platform with the waiver of annual charges and lower net worth requirements for those willing to trade on the bourse, reports PTI.

The exchange has decided to waive off the annual subscription fee of Rs25,000 for its wholesale debt market (WDM) trading members, the BSE said in a circular.

At the same time, BSE has also lowered the net worth requirement drastically from Rs1.5 crore to Rs30 lakh only.

The transaction charges would be levied at a rate of 0.01% of the traded value, or Rs50 per trade, whichever is lower, and the cumulative annual charge for any member would be capped at Rs1 lakh.

The WDM segment allows institutional investors such as banks, primary dealers and financial institutions in India to undertake transactions in debt instruments among themselves or with non-bank clients through the members of BSE.

BSE’s larger rival, the National Stock Exchange (NSE), has fixed the net worth requirement at Rs2 crore for the WDM segment, while the annual subscription charges are Rs1 lakh.

At the NSE, the average daily transaction value in the WDM segment is Rs2489.49 crore for the current fiscal. In the last fiscal ended 31 March 2011, the exchange registered a net traded value of about Rs6,00,000 crore.

While the figures were not available for the BSE, the exchange says that its WDM segment has shown “a gradual but consistent growth in turnover in the past few years with increased participation from the mainstream banking and institutional players.”

“This segment expects a sustained rise in turnover and participation in the coming years with the initiation of activity by new members and the continued support and participation of major banks, primary dealers and financial institutions,” the BSE said.

BSE began trading in wholesale debt securities in June 2001, although the government securities market is the largest and oldest component of the Indian debt market and has been in place at the BSE since the beginning of the 19th century.

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NCDEX lowers transaction fee to boost trade volumes

Experts said the reduction in transaction fee for members trading at the NCDEX platform would encourage business volumes in non-agricultural items like bullion, crude oil and metals

New Delhi: Leading agri-commodity bourse NCDEX has lowered the transaction fee for members, a move aimed at boosting trade volumes in non-agricultural items, reports PTI.

In a circular issued last week, NCDEX said with effect from 6 May 2011, members would have to pay a transaction charge of Rs2 per Rs1,00,000 of turnover if their average daily business is within Rs100 crore.

Transaction fee of an exchange is paid by members and is calculated at the rate of every Rs1,00,000 of business and on the basis of their daily turnover on the bourse.

According to the circular, members of NCDEX would have to pay Re1 if their average daily business is between Rs100 crore and Rs200 crore. Members would have to pay 50 paise if their daily turnover exceeds Rs200 crore.

Currently, members of NCDEX pay Rs4 for daily turnover up to Rs20 crore, Rs3 for turnover between Rs20 crore and Rs50 crore, Rs2 for turnover between Rs50 crore and Rs125 crore and Re1 for more than Rs125 crore.

Experts said the reduction in transaction fee for members trading at the NCDEX platform would encourage business volumes in non-agricultural items like bullion, crude oil and metals.

NCDEX has been trying to reduce transaction charges on its platform since the time its rival MCX had cut the fee in October 2009.

In 2009, commodity markets regulator Forward Markets Commission (FMC) had disapproved NCDEX's proposal to reduce transaction fee to 5 paise for every Rs1,00,000 turnover in the evening session.

According to the FMC guidelines, commodity bourses can charge a maximum of Rs4 and a minimum of Re1 for every Rs1,00,000 turnover. "The exchanges should not change the fee structure arbitrarily," Mr Khatua had then said.

At present, members of MCX pay Rs2.50 for daily turnover up to Rs250 crore, Rs1.25 for a turnover between Rs250 crore and Rs1,000 crore and Rs2 for a daily business of more than Rs1,000 crore.

NCDEX made business of Rs56,923 crore in the first fortnight of April 2011 while MCX clocked a turnover of Rs5,18,986 crore in the same period.

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Reliance Mutual Fund introduces Dual Advantage Fixed Tenure Fund-I-Plan K

Reliance Mutual Fund new issue closes on 24th May

Reliance Mutual Fund has launched Reliance Dual Advantage Fixed Tenure Fund-I-Plan K, a close-ended income scheme.

The scheme seeks to generate returns and reduce interest rate volatility, through a portfolio of fixed income securities that are maturing on or before the maturity of the scheme along with capital appreciation through equity exposure. The tenor of the plan is three years.

The new issue closes on 24th May. The minimum investment amount is Rs5,000.

Crisil MIP Blended Fund Index is the benchmark index. Shailesh Raj Bhan and Anju Chajjer are the fund managers.

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