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Mumbai: BSE (Bombay Stock Exchange) has announced a cut in transaction fee in the cash segment of the market from October 7. This step may be in the direction to match its rival NSE (National Stock Echange), which announced similar cut from October 1.

From October 7, the cost of transaction in BSE's cash segment will be Rs.3.25 per lakh, compared to Rs.3.50 that the exchange charges now. This is in line with what NSE charges. Though BSE has a negligible market share in the equity derivatives segment, which is dominated by NSE, it has managed to retain close to 30 percent market share in the cash segment.

On the current move, Madhu Kannan, Managing Director and Chief Executive Officer, BSE said, "With the new pricing framework coming into force from October 7, we are expecting more order flow from Indian and international investors. This shows our commitment to the members that we will continue to strive to provide the most efficient trading platform while bringing down the cost of transactions considerably."The transaction fees charged by Indian stock exchanges are the lowest in the world. However, the cost of trading in the country is high due to other statutory charges such as securities transaction tax and stamp duty.