FMC rejects NCDEX plea for change in transaction fees

FMC rejects NCDEX plea for change in transaction fees
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First Published: Thu, Feb 26 2009. 08 27 PM IST
Updated: Thu, Feb 26 2009. 08 27 PM IST
Mumbai: The country’s commodity regulator has rejected a proposal by the National Commodity and Derivatives Exchange (NCDEX) to change its transaction charges, according an order on the regulator’s Web site.
The Forward Markets Commission’s (FMC) order, which was passed last week, was made public on the Web site on Thursday.
The order also said the NCDEX was free to approach the commission afresh, with new facts and arguments.
NCDEX derives most of its volumes from agricultural commodities which trade from 10am to 5pm. Metals and energy commodities continue trading till 11.30pm.
It used to charge a transaction fee of Rs1-4 depending on the average daily turnover.
But from 28 January it introduced a uniform charge of Rs3 per Rs100,000 of trade in all commodities between 10am and 5pm, while charging only Rs0.05 per Rs100,000 of trade struck from 5pm till the end of session to promote active trade.
The regulator objected and asked the exchange to hold off the new charges till it examined the matter in depth. The NCDEX approached the Bombay high court for relief then.
The court on 5 February had upheld the market regulator’s objection to the introduction of the new transaction fees and asked the FMC to deal with the matter within 2 weeks.
Rajeev Agarwal, a member of the FMC, told Reuters NCDEX had not made any fresh request after the regulator’s order.
A spokesman for the NCDEX declined to comment on the matter.
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First Published: Thu, Feb 26 2009. 08 27 PM IST