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Commodity derivatives exchange NCDEX today said it has decided to reduce its transaction charges for members to widen customer base and to further make trading cost-effective for market participants.
"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. Our mission is to make it easier for customers to do business with us. This move is a natural progression towards achieving this objective," NCDEX Managing Director In-charge Samir Shah said in a release.
From September 1, members who have an average daily turnover 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.
NCDEX further said its 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 Rs 1 lakh of turnover will be charged.
Till now, there was no slab for average turnover of up to Rs 200 crore.
The minimum slab was Rs 250 crore.
There has been a growing demand from the market to provide a favourable transaction charges structure, aimed at encouraging larger participation from retail customers.
The Exchange said it believes this revised structure will provide a level playing field to members and will encourage broader market participation while rationalising their costs.
NCDEX is an online national level commodity exchange established on April 23, 2003 and commenced operations on December 15, 2003, offering futures trading in commodities in agriculture, energy and metals sector.
