NCDEX challenges FMC interim order in Bombay High Court

Written by feBureau | Mumbai | Updated: Feb 1 2009, 03:58am hrs
The National Commodity & Derivatives Exchange of India (NCDEX) on Thursday filed a writ petition against the Forward Markets Commission (FMC) challenging the interim stay granted by the regulator regarding the revision of transaction charges on Wednesday.

It is for the first time in the history of commodity futures markets that a exchange has challenged the regulators order. The exchange filed the petition in the Bombay High Court on Thursday and the petition will come up for admission on February 2. The plea will come up on Monday before the two member bench comprising the Chief Justice of the Bombay High Court and Justice DY Chandrachud.

When contacted, R Ramaseshan, MD and CEO, NCDEX, declined to comment but confirmed that the exchange had filed a writ petition against the regulator. The exchange has challenged the interim order issued by the FMC on transaction charges. We cant disclose the details, but we will submit our stand before the court in the next hearing, FMC chairman BC Khatua said. The FMC, on Wednesday, stayed the fresh decision taken by the NCDEX on revised transaction charges.

In a circular issued by the NCDEX on Wednesday, the exchange revised its transaction charges. The transaction charges by the exchange are still in force as it has not withdrawn the said circular. The revised charges are a uniform charge of Rs 3 per lakh of value of all trades in all commodities conducted from 10 am to 5 pm and an uniform charge of Rs 0.05 per lakh of value of all trades in all commodities conducted after 5 pm till the end of trading.