Commodity exchanges reduce transaction fee
Tuesday, 20 October 2009, 20:19 IST
By SiliconIndia
By SiliconIndia
New Delhi: Following the decision of reducing transaction fee by MCX (Multi Commodity Exchange), commodity exchanges NCDEX (National Commodity and Derivatives Exchange) and NMCE (National Multi-Commodity Exchang) also decided to slash transaction fees for their members.
Before taking any step, NCDEX will seek market regulator FMC's (Forward Markets Commission) and stakeholders' opinion. Last week, MCX reduced transaction charges to Rs.2.50 from Rs.4 for every Rs.1 lakh of turnover. This rate will be applicable for average daily turnover of up to Rs.250 crore. At present, NCDEX and NMCE imposes Rs.4 for every Rs.1 lakh turnover up to Rs.20 crore of average daily business.
Vijay Kumar, Chief Business Officer, NCDEX said, "We will review the transaction fee soon. The decision will be taken after consultations with our stakeholders and the regulator." A similar view was expressed by Kailash Gupta, Managing Director, NMCE, who said, "We will look into it."
In January, NCDEX had announced uniform fees of Rs.3 for every one lakh of the total value of all trades in all commodities from 10 am to 5 pm and five paise in the second session from 5 pm to 11 pm.
"In the beginning of the current year, NCDEX had also proposed a change in transaction fee. FMC, however, did not approve it. We had even filed petition with the Bombay High Court on this issue," said Kumar.
Before taking any step, NCDEX will seek market regulator FMC's (Forward Markets Commission) and stakeholders' opinion. Last week, MCX reduced transaction charges to Rs.2.50 from Rs.4 for every Rs.1 lakh of turnover. This rate will be applicable for average daily turnover of up to Rs.250 crore. At present, NCDEX and NMCE imposes Rs.4 for every Rs.1 lakh turnover up to Rs.20 crore of average daily business.
Vijay Kumar, Chief Business Officer, NCDEX said, "We will review the transaction fee soon. The decision will be taken after consultations with our stakeholders and the regulator." A similar view was expressed by Kailash Gupta, Managing Director, NMCE, who said, "We will look into it."
In January, NCDEX had announced uniform fees of Rs.3 for every one lakh of the total value of all trades in all commodities from 10 am to 5 pm and five paise in the second session from 5 pm to 11 pm.
"In the beginning of the current year, NCDEX had also proposed a change in transaction fee. FMC, however, did not approve it. We had even filed petition with the Bombay High Court on this issue," said Kumar.
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