Within a week of announcing a cut in transaction charges following a steep reduction announced by private exchange MCX-SX,the NSE today more than halved the leased line and VSAT charges for its small and medium members. The NSE has decided to lower the annual recovery charges for "A" category (40 messages) entry level leased line and "S" category (Connect2NSE,which provides exchange-related services including clearing and settlement and risk management services) leased line by 50 per cent from the existing Rs 1 lakh per annum to Rs 50,000 a year,effective October 1,the NSE said in a release here. The exchange has also reviewed VSAT recovery charges to its members,which have been reduced by almost 65 per cent from the existing Rs 1 lakh to Rs 36,000 per annum,for VSAT (Option I) and by almost 76 per cent to Rs 23,500 per VSAT per annum for VSAT option 2,with effect from February 1,2013,post the necessary government approvals. These two VSAT options will have different service level arrangements,the release said. "We have been providing world-class technology for connectivity to members in rural areas,smaller cities and the metros,at very affordable prices. This decision will further help member brokers to expand their reach and grow business by getting more retail clientele," NSE Managing Director and CEO Ravi Narain said. The exchange said it has been continuously reducing costs for members by optimising the cost of existing modes of connectivity or by introducing new or innovative modes. The NSE said it is keen that in difficult times,the burden of fixed overhead costs is brought down for members. Today's move comes after several such announcements of reducing connectivity,infrastructure and trading costs. In September 2009 the cost of a VSAT in a rural or semi-urban area was offset against transaction charges due from the member.
