ICICI Web alters commission |
Our Banking Bureau MUMBAI
Copyright (c) Business Standard
ICICI Web Trade Ltd has revised the commission structure on its product and would be now offering four slabs to its customers from the earlier two-tiered structure.
The lowest rate would be 0.4 per cent for those customers who trade values more than Rs 1 crore within the same settlement with the effective commission per leg for squared off trades being 0.2 per cent.
This new structure was announced at the launch of trading on the site, ICICIDirect.com.
For trades below Rs 10 lakh per quarter the commission of 0.85 per cent has been retained which is likely to be valid for most retail customers. Initially around 5,000 accounts have been activated though this number could increase soon to 22,000 which is the number of registrations that the company has received.
ICICIDirect had been accepting registrations since the middle of February and is expected to have roped in many sub brokers.
Madhabi Puri Buch, chief executive officer of ICICI Web Trade, said, "This revision in rate structure has taken place on account of customer feedback.
"Currently only the cash product is available with margins expected to be introduced in the next few months. We are also in talks with the US Securities and Exchange Commission for appropriate jurisdiction for allowing foreign investors and non-resident Indians to trade."
According to company officials, the SEC requires them not to solicit any investor in the US to trade on their site. "This would include even those individuals who have only a bank account in the US.
However, rules are not as stringent in the middle east and therefore that area is likely to be targeted more in the near future," said a company official.
Officials were also of the view that since regulations in the United Kingdom were as stringent as those in the US they would be concentrating on first sorting out issues in the latter due to the greater interest shown by investors in US.
Other new slabs include those for trades between Rs 50 lakh and Rs 1 crore which is 0.5 per cent and that for trading volumes between Rs 10 lakh to Rs 50 lakh at 0.6 per cent.