The Bombay High Court today dismissed the petition filed by National Commodity and Derivatives Exchange Ltd (NCDEX) over slashing of transaction rates by the exchange.
Faced with a sharp drop in turnover since July, NCDEX last month created two slabs for exchange rates - before 5 pm and after 5 pm. But Forward Market Commission (FMC) had taken exception to the new rate regime.
"High Court today dismissed the NCDEX petition, so it will have to keep the new rates in abeyance. But FMC has been asked to dispose of NCDEX's application within two weeks," said Avinash Rana, who represented the government in the case.
NCDEX had announced uniform charges of Rs 3 for every lakh of the total value of all trades in all commodities from 10 am to 5 pm and five paise in the second session from 5 pm to 11 pm.
The rates in the second slab were reduced drastically, in an attempt to attract trade in the metals.
But the Forward Market Commission took exception to this reduction, saying it might affect the business of two other commodity exchanges adversely.
FMC last month also ordered NCDEX to keep the new structure in abeyance, following which NCDEX had moved the High Court against the market commission.