The Commodity future regulator Forward Market Commission (FMC) has rejected the proposal of National Commodities & Derivative Exchange (NCDEX) to reduce the transaction fee according to different time zone and different commodity in trading.
Quashing the NCDEX’s proposal of lowering the transaction charges from Rs 3 a lakh to 5 paisa a lakh for transaction in the evening session, the regulator body stated in its revised guidelines that no exchange could fix the distinctive transaction charges for different time zone and different commodities.
FMC has already framed the norm that two patterns of charges cannot be levied on two different trade zone and two different commodities, a FMC official said.
The NCDEX- India’s largest and most recognized commodities exchange in January 2009 had reduced the transaction fee from Rs 3 per lakh to Rs 0.05 per lakh in evening (5:00 pm to 11 pm) session in the wake of dipping customer base that was against the framed guidelines of FMC.
While the commodity regulator had revised the guidelines on the move of NCDEX fixing the transaction charges at Rs 3 per lakh and abort on different tier of charges on different time zone and different commodities.
Opposing the order of FMC, the NCDEX approached Bombay High Court that dismissed the plea and asked FMC to consider the proposal within two weeks. However, after reconsidering the proposal, FMC once again rejected the proposal and ordered to restore the transaction fee as per framed guidelines.
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