Multi Commodity Exchange of India (MCX) has moved higher by 5.5% to Rs 1,180, bouncing back over 15% from intra-day low, in otherwise weak market after the Finance Minister said that trading in commodity derivatives will not be considered as a ‘speculative transaction’.
The stock opened at Rs 1,122 and hit a low of Rs 1,024 on NSE. As many as a combined 689,014 shares have changed hands on the counter so far against an average 100,000 shares that were traded daily in past two weeks.
“The government has propose to levy commodity transaction tax (CTT) on non-agricultural commodities futures contracts at the same rate as on equity futures, that is at 0.01% of the price of the trade,” the Finance Minister P. Chidambaram said in a budget speech.
CTT shall be allowed as deduction if the income from such transaction forms part of business income, he added.
Meanwhile, the government proposed to allow foreign institutional investors (FII) to participate in the exchange traded currency derivative segment to the extent of their Indian rupee exposure in India.
The stock opened at Rs 1,122 and hit a low of Rs 1,024 on NSE. As many as a combined 689,014 shares have changed hands on the counter so far against an average 100,000 shares that were traded daily in past two weeks.
“The government has propose to levy commodity transaction tax (CTT) on non-agricultural commodities futures contracts at the same rate as on equity futures, that is at 0.01% of the price of the trade,” the Finance Minister P. Chidambaram said in a budget speech.
CTT shall be allowed as deduction if the income from such transaction forms part of business income, he added.
Meanwhile, the government proposed to allow foreign institutional investors (FII) to participate in the exchange traded currency derivative segment to the extent of their Indian rupee exposure in India.
