MCX hikes non-deposit membership fees ten-fold

The Multi Commodity Exchange of India Ltd (MCX) has raised its deposit free membership fees ten-fold to Rs 25 lakh from Rs 2.5 lakh, currently in practice.

The deposit-based membership fee has been fixed at Rs 55 lakh; there was no deposit-based membership fee earlier, sources said.

The fee revision categorised under the trading-cum-clearing member would be effective from May 1, 2006.

In addition to the membership fee of Rs 2.5 lakh, one ought to pay Rs 2.5 lakh as security deposit to start business transactions under the non-deposit-based membership.

"Profiles of traders are improving. Those members who were trading for few lakhs of rupees earlier are trading in crores. Hence, the exchange must get a pie of this improved fortune," said an MCX source.

"At the MCX, so far there has been no distinction between a special member and a common member, while other national commodity exchanges charges a fee of, say, Rs 35 lakh from common members and only Rs 50,000 from special members," the source said.