NSE managing director RH Patil said that one possibility is that of the government giving transponder space on the new satellite being launched in which case a V-Sat connectivity could be attained between the broker's Indian and foreign office. But sources say, that this too could be fairly costly. The only viable option at this stage appears to be that of utilising the services of shared private networks abroad. NSE officials are, however, trying toascertain the cost associated with this and say that it would only be known once the details of the costing have been worked out.

Sources said that even though VSNL has recently reduced its international leased line charges, it is still about Rs 15 lakh for half a circuit for Asia and Europe and about Rs 17.25 lakh for the USA. These figures till recently were Rs 17.25 lakh and Rs 19.83 lakh respectively. These charges are for half a circuit and the remaining circuit charge would be levied by the international carrier. "Their charge is usually the same or slightly higher. In addition to this, there is a charge of Rs 2.50 lakh for the local loop including its installation. Taking into account other sundry charge, the total cost could work out to Rs 35-40 lakh per annum, which is fairly high for an Indian broker", said an NSE source. The charges worked out are expected to be forwarded to Sebi, which is in talks with the Department of Telecommunications (DoT) for regulatory approval for connectivity. Patilsaid that another option that could be considered is the dial-up facility. "In any case, Reuters provides quotes on an on-line basis. The trades could be executed through a dial-up facility but as of today this is not permitted. A more feasible solution would have to be found."

With fierce competition and a depressed market, brokerage charges have been falling sharply over the past few years. The recent shift to dematerialisation has further brought down brokerageand hence brokers have been forced to diversify their business. A lot of the bigger ones have become depository participants.