NCDEX to bring in differential transaction charges from Feb 19

Mumbai: National Commodity & Derivatives Exchange will from tomorrow introduce differential transaction charges for commodities to make trading more cost effective.

"Every commodity is at a distinctly different stage in the maturity cycle and introducing these commodity specific transaction charges will help in making it cost effective to trade participants. Our mission is to make it easier for customers to do business with us," NCDEX Managing Director and CEO Samir Shah said in a release.

The Forward Markets Commission had recently allowed exchanges to levy differential transaction charges for different commodities to ensure greater efficiencies and allow the market participants to derive the benefit of lower costs.

The exchange announced that commodities traded on its platform would be categorised into two groups.

List A will comprise commodities such as 'ref soya oil', soybean, castor seed and the members will now have to pay a transaction fee of Rs 1.95 for every Rs 1 lakh of turnover for monthly average daily traded value up to Rs 200 crore. On the incremental monthly average daily traded value, a transaction fee of Rs 1.30 for every 1 lakh of turnover will be charged.

List B will include commodities like gold hedge, crude oil, CPO, steel. Members will now have to pay a reduced transaction fee of Rs. 0.40 for every Rs 1 lakh of turnover for monthly average daily traded value up to Rs 50 crore. On the incremental monthly average daily traded value, a transaction fee of Re 0.30 for every 1 lakh of turnover will be charged.