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

Fund mop-up via preferential route drops over 38% in Apr-Oct

However, there were 293 preferential issues during Apr-Oct, 42 more than in the preceding period

Bear cartel suspected behind P-Notes bogey; trades under lens

These bear operators are said to have created huge short positions over the past few days, indicating they were betting on a fall in market ...

Puravankara gains on JV deal for prime land in Pune

The development would yield an expected 2 million square feet of prime residential development

Reliance Capital gains on Nippon Life stake hike plan

Nippon Life Insurance has agreed to increase its stake in Reliance Capital Asset Management from 26% to 49%.

JBF Industries hits 52-week high on heavy volumes

The stock rallied 16% to Rs 199 on back of over four-fold jump in trading volumes.

Back to Top