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National Commodity & Derivatives Exchange (NCDEX) has increased transactions charges for agricultural commodities, effective this month.
In February, the charges were reduced significantly. For agricultural commodities, charges stood at Rs 1.95/Rs 1 lakh for the first Rs 200-crore volumes, and Rs 1.3/Rs 1 lakh for incremental average daily volumes above Rs 200 crore. Now, the charges have been raised to Rs 3/Rs 1 lakh for volumes of up to Rs 100 crore; for additional volumes, the charge is Rs 2/Rs 1 lakh.
For metals, energy products and palm oil, the charges of 40 paise/Rs 1 lakh for a volume of up to Rs 50 crore and 30 paise for volumes exceeding Rs 50 crore have been maintained, as NCDEX is yet to penetrate the market in these segments, for which Multi Commodity Exchange is the market leader.
The exchange has also announced charges for off-market, or client negotiated, deals for traders using ‘Comtrack’ services, which are akin to depository services. Though it is similar to a warehouse service, goods deposited under Comtrack can later be sold on the NCDEX futures platform if an opportunity arises; else, the trader can sell the goods off the market.
NCDEX has announced effective June 1, it will levy a 0.1 per cent charge (for both buyers and sellers) for “client-negotiated trades” (off-market transactions). The charge will be levied on the last available spot price on the day the transaction is effected. The charge will be applicable on transactions carried out on holidays, too, but as these deals aren’t reported on the exchange platform, the charge would be similar to a warehousing or depository charge.
In addition to regular warehousing charges, these charges, too, will be recovered from clients by COMTRAK Participants.
