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| Exchanges to review transaction charges |
| Press Trust Of India / New Delhi Oct 20, 2009, 00:06 IST |
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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.
NCDEX, the second-largest exchange of the country, will seek market regulator Forward Market Commission’s (FMC’s) and stakeholders’ opinion before taking any decision.
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.
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