MCX cuts transaction charges to push up volumes

Tags: News
The Multi Commodity Exchange, India's biggest exchange in terms of volumes, has cut transaction charges on futures contracts of all commodities effective Wednesday, in a bid to push up battered volumes.

Volumes at the MCX fell 39 percent to 76 trillion rupees in the first ten months of the fiscal year beginning April 2013, as investors lost confidence in the exchange after a payment crisis at its spot exchange and restrictions on import of gold, triggering calls among industry participants to revive sentiment.

Transaction charges in precious and base metals and energy contracts have been cut to 2.10 rupees from the earlier 2.5 rupees for every 100,000 rupees of turnover for members generating an average daily turnover of up to 3.5 billion rupees, and 1.40 rupees per 100,000 rupees on incremental turnover above 3.5 billion rupees, the company said in a statement.

"Cost of transaction will come down for day traders, so it is a good move. This will help in day traders making multiple and frequent transactions," said Harish Galipelli, vice-president research with Inditrade Derivatives and Commodities.

The bourse has also slashed transaction cost on agricultural commodities by 70 percent.

For agri-commodity contracts, MCX said it has reduced the fee to 0.75 rupee for every 100,000 rupees of turnover for members generating monthly average daily turnover volume of up to 200 million rupees, and 0.50 rupee per 100,000 rupees on incremental turnover above 200 million rupees.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • 49 per cent FDI in defence should pave the way for modernisation

    There is one industrial sector in India that has been kept out of the purview of the normal cycle of investment and production — defence.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Welfare must be humanitarian not political

We are a very political people. We politicise and corrupt ...

Purnendu Ghosh

How to distinguish a need from a want?

The day when the annual budget is announced is one ...

Shona Adhikari

Decades apart, yet a common ground in fine art

Today’s column is about two artists born many decades apart, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture