In an effort to encourage retail investors to participate in financially sound companies, India’s second largest stock exchange, BSE ltd has said that it will waive the transaction fees on stocks in its flagship S&P BSE Sensex 30 Index.
As of now, transaction charges range from Rs 0.50 – 1.5 per trade for securities under group A, B and other non-exclusive scrips, depending on the total number of trades in a month, according to the exchange’s website. This includes top names such as Maruti Suzuki India Ltd and ICICI Bank Ltd.
The move will help India in the growth story as the Bombay Stock Exchange will now be the most preferred exchange for transacting in the Sensex 30 stocks, which are considered to be growth engine for India, the statement added.
Trading members of the BSE pay Rs 1.50 per trade for monthly volume of up to 1,00,000, and Rs 1.25 for 1,00,001 to 3,00,000 number of transactions.
BSE has classified equity scrips into categories such as Group A, B, T, among others, to provide guidance to the investors. Group A is the most tracked segment consisting of about 300 scrips, while Group B consists of more than 3,000 stocks.
The classification is based on several factors like market capitalisation, trading volumes and numbers, track records, profits, dividends, shareholding patterns and some qualitative aspects.
“It’s an intent to bring liquidity back into the exchange,” said Deven Choksey, managing director at KR Choksey Shares and Securities. “Whether it brings the volumes remains to be seen.”
The move will be effective from March 12, the BSE said in a release on Monday.
(Source: Reuters, PTI)