HC rejects NCDEX plea against stay on fee cut

The Bombay High Court today rejected the writ petition filed by the National Commodity and Derivatives Exchange (NCDEX) against a Forward Markets Commission directive staying NCDEX’s revised transaction charges, said B C Khatua, chairman, FMC.

“The case has been dismissed by the court,” Khatua said.

The petition was discussed in front of divisional bench of Chief Justice Swatantra Kumar and Justice D Y Chandrachud.

On Monday, the court had reserved its decision after hearing arguments from counsels of both the petitioner and respondent.

On December 30, NCDEX had lowered transaction charges, but FMC kept this in abeyance saying it violated regulatory guidelines and asked the exchange to comply with certain issues.

NCDEX again announced a similar cut in fees on January 28, which was immediately stayed by FMC.

Hence, NCDEX filed a writ petition in Bombay High Court against the commodity derivatives regulator’s stay.

When asked whether the exchange would approach the apex court, R Ramaseshan, managing director and chief executive officer, said, “We are awaiting the detailed order and will decide future course of action only after that.”

What the exchange understands is that court has asked FMC to decide on the matter in two weeks, Ramaseshan said.