MCX Stock Exchange (MCX-SX), which recently received regulatory
approval to function as a full-fledged national exchange, has come out
with an aggressively priced membership cost structure to attract new
brokers.
Its limited-period membership offer, announced on Wednesday, is
15-80% cheaper than those offered by rivals BSE and the National Stock
Exchange (NSE).
The offer, which runs till October 18, would
involve net outlay (including admission fees and deposit) of Rs25 lakh
for entry-level membership to cash and the futures and options (F&O)
segments.
MCX trading tips has kept the admission fees at Rs5 lakh, the same as that at NSE.
However,
its deposit requirement is just Rs10 lakh for each of the segments. The
deposit requirement at NSE is Rs125 lakh and Rs25 lakh for the cash and
F&O segments, respectively, while for BSE, the total deposit
requirement including base minimum capital and trade guarantee fund is
close to Rs30 lakh.
Experts see the move meeting its objective.
Experts see the move meeting its objective.
“The
cost structure is in line with the current trend and should help it
attract leading brokerages and build up volumes once it starts equity
segment trading,” said Sudip Bandyopadhyay, MD and CEO, Destimoney
Securities.
Jagannadham Thunuguntla, strategist & head of
research at SMC Global Securities, said the offer was expected, after
all the efforts that have gone into obtaining the equity segment
licence. “MCX, being a promoter-driven entity, has more aggression and
hunger to gain market presence. It has considerable base in the form of
commodity trading members who may enroll in equities segment as well,”
he said.
And it isn’t the cost structure alone that MCX-SX is using to attract members.
It
has kept the networth requirement for members at Rs30 lakh, which is in
line with what BSE stipulates for its members, but is less than the
Rs75-100 lakh required by NSE.
The exchange has also introduced
two special category of memberships --- professionally qualified member
and rural entrepreneur member --- in order to increase its reach and
attract brokers in rural and smaller districts with no capital market
penetration.
The exchange would offer 10% discount on application
fees to professionally qualified members and 20% discount to rural
entrepreneurs starting broking business in 5,300-odd smaller
subdistricts and talukas where there is no capital market penetration.
MCX-SX,
in its press release, said the cost optimisation will free up huge
capital for members and brokers that would otherwise be blocked in
exchanges. “Brokers and members will now be able to utilise this fund
towards client acquisition, training of staff and business expansion,”
it said.
you post is very good ..it is really benificial for the traders who trade in commodity..Thanks..for your valuable post.stock future tips
ReplyDelete