New NSE charges

[jazmil]

Does anyone have the breakdown of the new NSE charges? Are they now in effect? Cheers.

[Royal]

Jaz,
I read in the papers yesterday that it is now slightly above 2%, about 2.34 (not exactly sure) I do not know the breakdown for broker and NSE, but I am certain it came into effect on the 24th day of April, 2007
I even read in the papers today that the first bank offer coming out soon will enjoy the new rates
i told my brokers about it yesterday when instructing them to buy me some shares - better for me!
Regards

[c kenneths]

This sounds so good that I feel like dancing, if this is implemented, it will mean so much profit for everybody in the capital market, especially investors.

But more worring is the fact that some stockbroking firms will still be collecting the old charges. Early in the year, there was a similar announcement by the DG of NSE, and it was not implemented by some brokers.

Infact my broker told me that he is still collecting the old fees because NSE has it fixed on their system, where they just do a sum of all transactions and charge them without factoring in the reduction.

I didnt even know who to believe, but lets see how soon this will be implemented.
We hope for the best.

[paragon]

if the new rates are not implemented by your brokers, report them to SEC. I can assure you they will gladly penalise them. it is because they are not reported that they continue their fraudulent acts.

Peace...........

[Avocado]

Hi guys, could you provide a source or link for these new charges? Last I know (as of Jan 2007) the breakdown of charges are as below:

------
Buying
CSCS Fee (0.1% of consideration)
VAT on CSCS Fee (5% of CSCS fee, or 0.005% of consideration)
Stamp Duty (0.075% of consideration)
VAT on Broker's commission (5% of Broker's commision, or 0.1375% of Consideration)
SEC Fee (1% of consideration)
Broker's Commission (2.75% of consideration)
------
Selling
CSCS Fee (0.45% of consideration)
VAT on CSCS Fee (5% of CSCS fee or 0.0225% of consideration)
Stamp Duty (0.075% of consideration)
VAT (5% of Broker's commision, or 0.1375% of Consideration)
NSE Fee (0.65% of consideration)
VAT on NSE Fee (5% of NSE fee or 0.0325% of consideration)
Broker's Commission (2.75% of consideration)

[jazmil]

A Businessday article states that the reduction was from 4.07% to 2.36% on the buy side and 4.12% to 2.65% on the sell side but I'm not sure how they came up with those numbers. Here's the link.

http://www.businessdayonline.com/?c=56&a=12975

[Avocado]

The article is practically accurate on the old figures: 4.0675% on the buy side, 4.1175% on the sell side (if memory serves well, these figures are valid for the first NGN250,000 of consideration; it appears the rates are slightly cheaper for higher amounts). The breakdown of those (old) figures are in post #5 above.

If there's any information about the breakdown of the new figures, it'll be interesting to see them. Usually, stockbroking firms 'll send these out to their clients soon as they get the relevant document from the SEC.

.

[Avocado]

It was nice to read the release by the SEC per the reduction in the cost of transactions on the NSE; but, has anyone nany news about the NSE formally advising stockbrokers and stockroking firms? Without such a document, transactions could be charges at the 'old' rates, and it is unclear if there'll be any refunds for transactions done since (and including) 24 May 2007.

Any info from stockbrokers?

.

[Miss_Risky]

Hi Avocado,

I spoke to a stockbroker yesterday and was told they have not had an official notification from SEC and would therefore continue to apply the old rate. However, she assures me that they will refund those fees once they have the official communication. The reason being they do not want to be out of pocket if NSE have not adjusted their system accordingly.

Has anyone bought shares recently at the new rates?

[Avocado]

Miss_Risky: thanks for that.

I recently bought shares; the 'old' rates applied. And that's reasonable; it's been 11 working days since the announcement and the brokers are yet to be notified; not by some document, not even by email. That's quite inefficient and lazy; huge amounts are involved considering volumes traded on the NSE.

.

[dotunk]

you can see how our sytem works.

Same applies to fuel when a hike is over the attendants at the fuel ststion tell you "dem never hear"

the announcement is a nice thing. in fact i was shocked to be told by my broker sometime at the beginning of the year that the commissions had been increased from .375 to .425. well i took his word for it since he is trustworthy. i actually got to know thruogh my new broker and i cross checked with my old one just to be sure.

i hope it would be implemented as soon as possible, cos thats a lot of money down the drain if you ask me.