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Journalism of Courage
In an initial move to counter the low pricing advantage of MCX-SX for brokers in the cash segment of equity trade,market leader National Stock Exchange (NSE) has allowed to set-off the annual subscription charge of Rs 1 lakh against the transaction fee,thereby giving brokers a benefit of Rs 1 lakh per annum.
NSE is also offering to keep carry forward the un-utilised amount till they utilise the same. Thus it is no longer a fixed cost for the brokers.
MCX-SX had announced a transaction fee which is lower by 40-50 per cent (depending on the category and traded value) of that charged by NSE. For example,in the cash segment in equities,NSE charges a transaction fee of Rs 3 per lakh for a monthly traded value in excess of Rs 5,000 while MCX-SX is charging Rs 1.5 per lakh for the same category. For a traded value of up to Rs 1,000 crore MCX-SX will charge Rs 2 per lakh as against NSEs charge of Rs 3.25 per lakh.
Market experts say that while MCX-SX may attract the small brokers and jobbers,institutional and retail brokers will only move to them after there are significant volumes at the exchange that may offer them the liquidity.
