NCDEX new transaction charges in abeyance

Written by Commodities Bureau | Mumbai | Updated: Jan 3 2009, 03:14am hrs
The Forward Markets Commission (FMC) has directed the National Commodity & Derivatives Exchange (NCDEX) to keep the circular, related to revised transaction charges levied by the exchange, in abeyance for the time being.

In continuation with the meeting on Wednesday, key officials at NCDEX met the regulator on Thursday to discuss and review the circular relating to transaction charges. The FMC has asked the exchange not to implement the circular as it is a regulatory issue. However, as it is a commercial proposal for the NCDEX, they have sought some time in this regard, BC Khatua, Chairman, FMC, told FE. He also said that the FMC would discuss the issue with the exchange for further dialogue after the latter takes it up for discussion at its next board meeting.

In view of certain regulatory concerns, as directed by the FMC, the schedule of transaction charges, advised in the earlier dated December 29, is not being implemented, Ravinder Sachdev, deputy chief compliance officer, NCDEX, said in a fresh circular issued late on Thursday evening.

On December 29, the exchange said in a circular that it would levy a uniform charge of Rs 3 per lakh on daily turnover on trading that takes place from 10 am to 3.30 pm and 50 paise after that till the end of the second session. The exchange revised its charges after a gap of nearly one-and-half-years.