The National Commodity and Derivatives Exchange has decided to decrease its transaction charges
for members, in order to make trading more cost effective
for market participants and widen the customer base.
According to the release, from September 1, 2013, members who have an average daily turnover of up to Rs 200 crore will pay a transaction charge of Rs 45,000 compared to the earlier charge of Rs 62,500. This reduces their cost by almost a third.
Also, members will now have to pay a transaction fee of Rs 2 for every Rs 1 lakh of turnover and for average daily turnover above Rs 200 crore, a transaction fee of Re 1 for every 1 lakh of turnover will be charged.
Till now there was no slab for average turnover of upto Rs 200 crore. The minimum slab was Rs 250 crore. There has been a growing demand from the market to provide a favorable transaction charges structure, aimed at encouraging larger participation from retail customers.
Samir Shah, MD-incharge, NCDEX says, "The reduction in transaction charges is one of the many steps that we are taking in the interest of the market, which is going through challenging times. At NCDEX, our mission is to make it easier for customers to do business with us. This move is a natural progression towards achieving this objective."