Transaction Fee Removed By BSE, Rule Will Be Applicable To All 30 Shares

| February 26 , 2018 , 18:27 IST

The Bombay Stock Exchange (BSE) has announced to withdraw transaction charges on the shares of companies involved in the 30 share Sensex to increase the retail investor participation in financially strong companies. This arrangement will be applicable from March 12.

Currently, in this market, the transaction fee is charged from 50 paise to one and a half rupees per transaction on securities of Group A, B, and other non-specific shares. BSE has stated in a segment that transaction fee is being withdrawn from the shares of S and P BSE Sensex 30 on March 12, 2018. The S and P BSE Sensex is a Barometer to measure India’s economy. The Exchange believes that this decision will make BSE the most preferred exchange for transactions in 30 shares of the Sensex, which is a growth engine for India.

Trading members of BSE have to pay transaction fee per transaction for one lakh per month, at the rate of one and a half rupees per deal and transaction fee of Rs one lakh to three lakh per transaction per transaction. Apart from that, the fee is one rupee transaction and Rs 5 Lakh to 20 lakh rupees is charged at 75 PA per transaction. For deals above 20 lakh, there is a fee of 50 paise per deal.

BSE has classified equity shares in group A, B, T etc. This gives guidance to investors. Group A 300 shares and Group B have more than 3,000 shares. This classification is based on many factors. This classification is based on many factors, Such as market cap, trading volumes and numbers, track records, profits, dividends etc.

The 30-scrip stocks which constitute the Sensex are  Tata Motors, Maruti Suzuki, Axis Bank, IndusInd Bank, Larsen and Toubro, Mahindra and Mahindra, Kotak Mahindra Bank and Adani Ports among others.

Other stocks which constitute the barometer index include those of ICICI Bank, HDFC Bank, PowerGrid, Hero MotoCorp, Coal India, Dr Reddy's Labs, HDFC, Hindustan Unilever, Bajaj Auto, Yes Bank, Asian Paint, Reliance Industries, ONGC, Tata Steel, NTPC, State Bank of India, Wipro, Bharti Airtel, ITC, Infosys, Tata Consultancy Services and Sun Pharma.