The stockmarket regulator has initiated a move to cut transaction and other fees charged by the Central Depository Bangladesh Limited or CDBL, the operator of central depository system for electronic share transaction.

The move, an amendment to the existing depository rules, will give a relief to the depository participants, commonly known as stockbrokers and merchant banks, as well as to the investors in the backdrop of a bearish trend in the market since the early 2011's price debacle.

As per the modification, the fee on transactions of equity share, mutual funds and exchange-traded funds will be Tk 0.000125, instead of existing Tk 0.00025. It means that if the total transaction value is Tk 1 lakh, a depository participant will have to pay Tk 12.5, in lieu of current Tk 25.

The fee on transaction of corporate bond or debenture or other fixed income securities will be Tk 25, while the charge will be Tk 10 on government securities and Tk 0.00003 on the securities listed with the small-cap platform.

The regulator also proposed to scrap the minimum fee of Tk 5 on share transaction.

The changes will, however, come into effect after a gazette notification.

At a recent meeting, Bangladesh Securities and Exchange Commission approved the draft amendment, which is now on the commission's website for public opinion.

The commission brought the changes following repeated recommendations from the Dhaka and Chittagong bourses to cut the CDBL charges, said a BSEC official.

“After scrutinising the public opinion, the commission will give the final approval and then publish the gazette notification,” the official said.

In the modification, the regulator proposed to cut the annual fee on each beneficiary owner's account by Tk 50 to Tk 450.

Of the amount, the CDBL will get Tk 100 instead of existing Tk 150, the BSEC Tk 50 as usual, the government Tk 200 and the depository participant Tk 100.