Transaction charges for stocks in the benchmark index - which includes top names such as Maruti Suzuki India Ltd and ICICI Bank Ltd - range from 0.5 rupee to 1.5 rupees per trade, depending on the total number of trades in a month, according to the exchange's website.
The move is aimed at driving volumes and liquidity in Asia's oldest exchange as the country's largest bourse, National Stock Exchange, holds a significantly higher share of the market, according to market experts.
"It's an intent to bring liquidity back into the exchange," said Deven Choksey, managing director at KR Choksey Shares and Securities. "Whether it brings the volumes remains to be seen."
The move will be effective from March 12, the BSE said in a release on Monday.