As correctly predicted by Moneylife, the NSE also announced reduction in transaction charges from next month citing the need to increase liquidity and encourage wider participation of investors
Mumbai: Two days after the privately promoted MCX Stock Exchange (MCX-SX) bourse announced up to 50% lower transaction fees for the prospective broker-members, country's largest exchange National Stock Exchange (NSE) also announced a reduction in its fee, citing the need to increase liquidity and encourage wider participation of investors, reports PTI. Moneylife on Monday has correctly predicted that NSE, the most expensive but richest exchange would soon follow the suit and this may start a bloody price war among exchanges.
The reduced charges, not yet quantified, will be effective 1st October, NSE said in a statement.
"The move will help increasing the liquidity and make transactions cost-efficient, which is expected to bring more investments into the market," an NSE spokesperson told PTI.
The yet-to-be operational MCX Stock Exchange on Monday announced lower transaction charges to the tune of 50%.
The NSE members will be able to set off annual subscription charge of Rs1 lakh per annum against their transaction charges, the bourse said, adding the annual subscription charges are no longer a fixed overhead. "This will give an immediate relief to over 1,400 trading members," an NSE statement said.
In the F&O segment, advance transaction charges are currently being offset against transactions charges of the current year. Whatever is not utilised can be carried forward till they utilize the same.
Just as in the case of rural VSATs etc, where adjustments have been made against transaction charges, the exchange has decided to give benefit of annual subscription charges in the capital market segment.
In 1996, when the cash segment was introduced, charge was Rs10 for a lakh of trade for any traded value. In 2000 it was brought down to Rs4 for traded value above Rs800 crore and Rs7 for traded value up to Rs200 crore.
It was further brought down in 2005 to Rs3.50 per lakh of trade for any traded value and then again in 2009 it was brought down to Rs3.25 for a lakh of trade for traded value up to the first Rs1,250 crore and Rs3 for traded value above Rs15,000 crore.
In the Futures & Options too, the transaction charges have been brought down several times. In July 2001, for both futures and options, fees was levied (after an initial waiver in 2000) at Rs2 for a lakh of trade, the NSE said.
In 2005, charges on options began to be levied on just the premium and not the traded value. In 2009, futures fees was brought down to Rs1.90 per lakh for traded value up to the first Rs2,500 crore and Rs1.75 for traded value above Rs15,000 crore.
The total spends made on all credit cards issued in the country as on 31 March 2012 was Rs96,000 crore and it is likely to go up to Rs1.2 lakh crore as on 31 March next year
Hyderabad: SBI Cards, a joint venture between State Bank of India (SBI) and GE Capital, is targeting to add one million new customers by 2014-15, reports PTI.
SBI Cards is presently the second largest issuer of credit cards in the country in terms of new cards issuance and the third largest in terms of Accounts-in-Force.
With a current customer base of over 2.3 million and a total asset base of Rs2,500 crore, SBI Cards operates through a footprint of 50 cities in the country.
"SBI Cards is doing extremely well. We turned the corner as on 31 March 2011. 2012 we made very good profits. Our expectation is that in the next many years, our profitability will go up definitely.
"Also, we plan to add one million new customers by in next two-three years. But more than that, we will be delivering on our brand promise of make life simple," Kadambi Narahari, Chief Executive Officer, SBI Cards (SBI Cards and Payment Services), told reporters.
The total spends made on all credit cards issued in the country as on 31 March 2012 was Rs96,000 crore and it is likely to go up to Rs1.2 lakh crore as on 31 March 2013, he said.
The credit card industry in the country has matured dramatically over the years with delinquencies coming down substantially, he said.
"You don't have a situation where people are using their credit cards recklessly. They are very responsible. They are now using the credit card as a financial instrument for their own personal financial planning. So, I can see that the delinquencies come down dramatically from the good old years.
That is because the number of card holders who are defaulting on the cards is also coming down. So, today we are seeing a mature credit card market compared to what it was a few years ago," he said.
SBI Cards also launched Click2Card, a customer-friendly online credit card application service, in Andhra Pradesh.
"With the internet and e-commerce boom in India, customers are increasingly looking for financial products online. Click2Card is another innovative service offering from SBI Cards and is in line with our digital roadmap. The new platform will offer significant customer benefits," Narahari said.
Under the partnership SBI will provide post-harvest credit facilities, while StarAgri will offer warehousing and other value-added services to farmers across India
Mumbai: State Bank of India (SBI) and Star Agri-warehousing & Collateral Management (StarAgri), an agri-services and solutions provider, have entered into a tie-up for warehousing receipt financing and collateral management services, reports PTI.
The partnership will deliver post-harvest credit facility to farmers all across India, a company statement said.
The two companies aim to reach farmers, joint liability groups and producer companies through SBI's 9,426-plus rural and semi-rural branches and StarAgri's offices spread over all states in India, it said.
SBI will provide post-harvest credit facilities, while StarAgri will offer warehousing and other value-added services to farmers. The produce stored in StarAgri's warehouses will act as collateral, it added.