NCDEX lowers transaction fee to boost trade volumes******

NEW DELHI, May 10 (PTI): Leading agri-commodity bourse NCDEX has lowered the transaction fee for members, a move aimed at boosting trade volumes in non-agricultural items. In a circular issued last week, NCDEX said with effect from May 6, 2011, members would have to pay a transaction charge of Rs 2 per Rs 1,00,000 of turnover if their average daily business is within Rs 1.0 billion. Transaction fee of an exchange is paid by members and is calculated at the rate of every Rs 1,00,000 of business and on the basis of their daily turnover on the bourse. According to the circular, members of NCDEX would have to pay Re 1 if their average daily business is between Rs 1.0 billion and Rs 2.0 billion. Members would have to pay 50 paise if their daily turnover exceeds Rs 2.0 billion. Currently, members of NCDEX pay Rs 4 for daily turnover up to Rs 200 million, Rs 3 for turnover between Rs 2.0 billion and Rs 500 million, Rs 2 for turnover between Rs 500 million and Rs 1.25 billion and Re 1 for more than Rs 1.25 billion. Experts said the reduction in transaction fee for members trading at the NCDEX platform would encourage business volumes in non-agricultural items like bullion, crude oil and metals. NCDEX has been trying to reduce transaction charges on its platform since the time its rival MCX had cut the fee in October, 2009. In 2009, Commodity markets regulator FMC had disapproved NCDEX' proposal to reduce transaction fee to 5 paise for every Rs 1,00,000 turnover in the evening session. According to the FMC guidelines, commodity bourses can charge a maximum of Rs 4 and a minimum of Re 1 for every Rs 1,00,000 turnover. "The exchanges should not change the fee structure arbitrarily," Khatua had then said. At present, members of MCX pay Rs 2.50 for daily turnover up to Rs 2.50 billion, Rs 1.25 for a turnover between Rs 2.50 billion and Rs 10 billion and Rs 2 for a daily business of more than Rs 10 billion.