The shares of Multi Commodity Exchange of India (MCX) gains over 2% to intra-day high of Rs 6004 on NSE after the company announced a revision in its transaction fees for both futures and options contracts, effective from next month. The new structure will introduce a fixed fee of Rs 2.10 per lakh of turnover for futures contracts and Rs 41.80 per lakh of premium turnover for options contracts.
Transition to Fixed Fee Structure
This revision marks a shift from MCX’s previous tiered fee system to a fixed transaction fee structure, in line with instructions from the Securities and Exchange Board of India (SEBI).
The change aligns with SEBI’s “True to Label” principle, which ensures that the fees charged to clients by exchange members are consistent with the fees charged by the Exchange itself. This move aims to increase transparency and fairness within the market, reinforcing MCX’s commitment to investor protection.
SEBI’s Concern Over Previous System
SEBI had earlier raised concerns regarding the slab-based charge system used by certain Market Infrastructure Institutions (MIIs), including MCX. Under the tiered system, clients could potentially be charged more than what the MIIs actually collected, leading to transparency issues and potentially disadvantaging market participants.
Call for a Uniform Fee Structure
In response, SEBI urged MIIs to ensure that the charges billed to clients accurately reflect the fees collected from members. SEBI’s directive also emphasized the need for a uniform fee structure across the market, moving away from the slab-based approach. This change is expected to help reduce costs for clients and foster a more equitable trading environment.
The revision in transaction fees by MCX is a direct response to these regulatory concerns, aiming to enhance market integrity and client confidence.
Stock Performance in Last One Year
MCX shares have delivered positive returns across various time frames. Over the last month, the stock has shown a positive return of 21.02%, indicating short-term growth. In the last six months, the performance has been even more impressive, with a substantial increase of 76.19%, showcasing the stock’s resilience and upward momentum.
Year-to-date, MCX shares have surged by 83.74%, emphasizing the stock’s positive trajectory in the current calendar year. Looking back over the last twelve months, the stock has demonstrated significant growth, surpassing 209.07%. These consistent positive returns underscore the stock’s strong performance and appeal to investors.
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