HC reserves order on NCDEX plea against FMC

The Bombay High Court today reserved its order on a dispute between the commodity market regulator Forward Markets Commission (FMC) and National Commodity and Derivatives Exchange Ltd (NCDEX) over slashing of transaction rates by the exchange. Faced with a sharp drop in turnover since July, NCDEX last month created two slabs for exchange rates, before 5 pm and after 5 pm.

NCDEX announced uniform charges of Rs 3 for every lakh 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 11 pm.

In an attempt to attract trade in the metals, the rates in the second slab were reduced drastically. But the Forward Market Commission took exception to this reduction, saying it might affect the business of two other commodity exchanges adversely. FMC last month also ordered NCDEX to keep the new structure in abeyance, following which the latter moved the Bombay High Court.