BSE cuts membership fee by 90% to Rs 10 lakh

The Bombay Stock Exchange on Thursday said it has reduced the deposit amount for new members by 90 per cent to Rs 10 lakh with immediate effect, within days of its rival exchange MCX-SX meeting regulatory norms for launching equity bourse.

"The BSE has decided to reduce the deposit amount for new deposit-based membership from the existing Rs 100 lakh to Rs 10 lakh with immediate effect," the Asia's oldest bourse said.

The reduction would be effective across equity products offered by the exchange, which include cash, derivatives and debt.

The announcement by BSE comes within a week after the promoters of country's third largest bourse MCX-SX reduced their stake to 10 per cent – a necessary condition for it to start trading in shares.

Last week the two MCX-SX promoters – Financial Technologies and MCX – completed divestment of their 90 per cent stake to 18 banks and financial institutions.

As per Sebi norms, no single entity can hold over 5 per cent in an exchange barring some like stock exchanges and banking organisations that can hold up to 15 per cent stake.