FREQUENTLY ASKED QUESTIONS ON NEW TRANSACTION FEE STRUCTURE

1) What are Passive Orders?

For every executed trade, the order (Limit Orders) which has been placed first on the basis of the order time stamp assigned by BSE system will be considered as a Passive Order.

2) What are Active Orders?

For every executed trade, the order (Market Order or Limit Order) which has been matched against an existing order (or Passive Order) will be considered as an Active Order.

3) What is the transaction charge for Passive Orders?

Passive Orders will be charged @ Rs.2.25/lac of gross turnover (includes Re.0.01 as TGF and Re.0.01 as IPF contributions)

4) What is the transaction charge for Active Orders?

Active Orders will be charged @ Rs.3.25/lac of gross turnover (includes Re.0.01 as TGF and Re.0.01 as IPF contributions)

5) Can you show me an example of the order book along with the transaction charges levied on them?

Example:

Note: 1. Time stamp reference is to the time assigned by the BSE system, and not order entry time by the Member.

6) How will charges be levied if two orders are placed at the same time?

Executed orders are identified as passive or active on the basis of their respective time stamps assigned by the BSE System; time stamps for two orders cannot be the same.

7) What if the order placed gets matched with a Stop Loss Order?

When a trade is executed, the order that is placed first in the system, based on the order time stamp which is assigned by BSE system will be considered as a Passive Order.

E.g.: Case Study

Þ      At 10:02:00 am: Client A places a Stop Loss order for 100 shares of Scrip XYZ at Rs 95.00

Þ      At 10:10:05 am: Client B places buy order of 100 shares of scrip XYZ at Rs 95 in the system.

Þ      At 10:15:00 am: Market price of scrip XYZ falls to Rs 95.10.

Þ      At 10:15:00 am: Client A’s order for 100 shares of Scrip XYZ at Rs. 95.00 is added to the order book

Þ      At 10:15:05 am: Trade gets executed between clients A & B at Rs 95

Þ      Stop Loss order of Client A will be considered as the Active Order, although it was submitted to the exchange prior to Client B’s order. Time Stamp is based on when the order is entered into the exchange’s system. Hence Buy Order of Client B will be considered as Passive Order. 

Þ      Hence, Client B will be levied transaction charge @ Rs 2.25 / 1 lac of turnover and Client A will be levied transaction charge @ Rs 3.25 / 1 lac of turnover

8) How will the Members identify their executed orders as passive orders / active orders?

In addition to the Transaction Charge Report (File name: TRCddmmyy) and brk file which are downloaded to the Members, BSE will provide an additional data file (File Name: LPddmmyy) containing information of the Passive Orders.

9) What is the file name and file format for the Passive orders?

Filename: LPddmmyy 

Format is: 

E.g. 00000000123|500325|B|

10) What is the location of this file?

The above file will be available to the Members of BSE for downloading using the DLOAD32

11)   How can Trading Members and clients take advantage of the lower Transaction Fee structure?

Lower transaction charges will induce the market participants to place more Passive Orders which will help in better price discovery and low impact cost.