Top brokers unhappy over 50pc rise of fee on transaction

Top brokers of the premier bourse have expressed dissatisfaction over 50 per cent rise of fee on transaction value of equity and the units of mutual funds (MFs), officials said.
Dhaka Stock Exchange (DSE) Wednesday increased the transaction fee for equities and the units of MFs to 0.03 per cent from the existing 0.02 per cent and waived the fee of Hawla.
The revision in the transaction fee came following the execution of lot-free transactions facilitated by the Next Generation Automated Trading System launched on December 11 last.      
 "Some brokers told us over telephone that due to a jump in number of transactions Hawla charge was supposed to rise up to 15 per cent. But the transaction fee rose 50 per cent at a time creating a burden on them," said a top official of the premier bourse.
A top broker also told the FE that a sudden rise of transaction fee will be a burden for them.
Asked, Shakil Rizvi, the incumbent director and the former president of the DSE, told the FE that there is an option of reviewing transaction fee within three months.
"Stock exchange is also the organisation of the stock brokers. So, the increased transaction fee will not be deposited into the account of other organisation," Mr. Rizvi said.
He said brokers of other exchanges across the world are not able to execute trades at a minimum fee charged by the premier bourse.
"We should also look at the management cost of the exchange. I think brokers are worried over the hike of transaction fee due to poor market turnover. However, we will observe the effect of rise on transaction fee up to mid January," Rizvi said.
He said the DSE can revise the transaction fee considering the overall situation.  
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