NCDEX, NMCE to seek regulator’s nod after MCX cuts fee.

Commodity exchanges NCDEX and NMCE today said they would consider reducing transaction fee for their members, a move that comes after the country’s largest commodity bourse, MCX, decided to slash the charges.

Also Read   Related Stories News Now - Festive season sales push up retail targets - 'It puts a smile on my face' - Govt considering gold ETF trade on commexes: FMC - 'A cost-competitive and transparent system will automatically attract customers' - B-school suggests ways to revamp Indian Post - FMC hopeful of passage of FCRA bill in winter session

Also Read   Related Stories News Now - Markets end flat - Turbulence ahead for airlines despite oil price drop - Weak rupee may bring cheer to NRIs, expats - LIC buys PSU stocks, sells pvt sector blue-chips in Q4 - Banks may lower deposit rates as inflation eases: Report More

Last week, MCX reduced the transaction charge from Rs 4 to Rs 2.50 for every Rs 100,000 of turnover. This rate will be applicable for average daily turnover of up to Rs 250 crore. At present, NCDEX and NMCE charge Rs 4 for every Rs 100,000 turnover up to Rs 20 crore of average daily business.

NCDEX Chief Business Officer Vijay Kumar 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 NMCE Managing Director Kailash Gupta, who said, “We will look into it.”

In January, NCDEX had announced a uniform fee of Rs 3 for every 100,000 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 11pm.

“In the beginning of the current year, NCDEX had proposed a change in its transaction fee. The FMC, however, did not approve it. We even filed a petition with the Bombay High Court on this issue,” NCDEX’s Kumar said. The FMC had asked NCDEX to defer the implementation of the charges. The regulator took exception to the sharp cut for the evening session, saying it might affect the business of the two other commodity exchanges. Now, since MCX has slashed the fee, agri-commodity bourse NCDEX will approach the FMC seeking clarification whether it can take similar action.

“We will seek clarity from the regulator before we decide on this issue (transaction fee),” Kumar said.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets end flat - Turbulence ahead for airlines despite oil price drop - Weak rupee may bring cheer to NRIs, expats - LIC buys PSU stocks, sells pvt sector blue-chips in Q4 - Banks may lower deposit rates as inflation eases: Report

Tags : NCDEX and NMCE | FMC   Read Business news in  Advertisements -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Journey on, We are by Your Side. Click here to know more -  2 Lac Apartments, 1 Lac House / Plots. Click here -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Watch The Film Here. Click here to know more.. -  Leader in Passenger Car & Automobile Tyres. Click here -  1 billion in saving for Unilever without any tangles. -  A Brand New Server at a Price That Fits Your Budget. Click here -  Learn How One City is Running on FOOD SCRAPS. -  One Partnership Endless Possibilities. Click here to know more -  Helping doctors detect diseases earlier, saving costs & extending lives. -  36 Lakhs can get you a pool of Luxuries. Click here -  Which is the best plan for your daughter -  Check out the TRUE COLOURS of your Stocks, Now for FREE! -  One of the leading business schools in the world.Know More