Business Standard

Commodities, securities norms to converge

Commexes allowed to have different transaction charges for commodities

Related News

With the derivatives regulator, Forward Markets Commission (FMC), now under the finance ministry, rules governing the commodities markets are being converged with the derivatives’, wherever there are similarities.

One is to disallow commodity exchanges from having different transaction charges for different brokers. In securities, irrespective of volumes, the charges are similar for all brokers. However, the has allowed exchanges to have different transaction charges for deliverable commodities.

An official said, “We have allowed freedom to exchanges to have different charges for commodities where they have to establish different mechanisms and set up infrastructure for delivery.”

In the case of agricultural commodities, more deliveries take place. However, in base metals and energy, cash settlements take place. Hence, charges can be lowered.

Some exchanges have requested the FMC for this. But the Multi Commodity Exchange, where most volumes come from metals and energy, stands to lose.

“The move is to ensure a level-playing among exchanges,” said the official.

The FMC had said it may allow shareholders of exchanges with less than two per cent shareholding to trade on those. However, now it is considering allowing all shareholders to trade on the same exchange, given the shareholder is not on its board.

The FMC, said the source, is considering widening position limits for participants. This could improve hedging and bring higher volumes. The risk management group set up by the FMC had recommended this.

Read more on:   
|
|
|

Read More

Rubber imports up by 41% in Apr-Jan

But during the month of January, the imports have slowed down 20%

Quick Links

 

Market News

I don't see a steep market correction coming: U R Bhat

Interview with Managing director, Dalton Capital Advisors (India)

We won't stop looking at acquisitions: Siraj Chaudhry

Interview with Chairman, Cargill India

Govt to aid coffee growers in fight against pest attacks

The severity of WSB attacks has been such that many estates have resorted to uprooting arabica plants to avoid further damage

HKEx aims to expand mini contracts to more metals and coal

Hong Kong Exchanges and Clearing Ltd (HKEx) plans to expand the range of its three "mini" contracts to include more base metals as well as coal, ...

Adverse market conditions forcing closure of oilseed crushers

Refiners prefer to import crude palm oil from Malaysia and Indonesia, finding this cheaper than local crushing

Back to Top