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
New Delhi: Leading agri-commodity bourse NCDEX has lowered the transaction fee for members, a move aimed at boosting trade volumes in non-agricultural items, reports PTI.
In a circular issued last week, NCDEX said with effect from 6 May 2011, members would have to pay a transaction charge of Rs2 per Rs1,00,000 of turnover if their average daily business is within Rs100 crore.
Transaction fee of an exchange is paid by members and is calculated at the rate of every Rs1,00,000 of business and on the basis of their daily turnover on the bourse.
According to the circular, members of NCDEX would have to pay Re1 if their average daily business is between Rs100 crore and Rs200 crore. Members would have to pay 50 paise if their daily turnover exceeds Rs200 crore.
Currently, members of NCDEX pay Rs4 for daily turnover up to Rs20 crore, Rs3 for turnover between Rs20 crore and Rs50 crore, Rs2 for turnover between Rs50 crore and Rs125 crore and Re1 for more than Rs125 crore.
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 Forward Markets Commission (FMC) had disapproved NCDEX's proposal to reduce transaction fee to 5 paise for every Rs1,00,000 turnover in the evening session.
According to the FMC guidelines, commodity bourses can charge a maximum of Rs4 and a minimum of Re1 for every Rs1,00,000 turnover. "The exchanges should not change the fee structure arbitrarily," Mr Khatua had then said.
At present, members of MCX pay Rs2.50 for daily turnover up to Rs250 crore, Rs1.25 for a turnover between Rs250 crore and Rs1,000 crore and Rs2 for a daily business of more than Rs1,000 crore.
NCDEX made business of Rs56,923 crore in the first fortnight of April 2011 while MCX clocked a turnover of Rs5,18,986 crore in the same period.
Reliance Mutual Fund new issue closes on 24th May
Reliance Mutual Fund has launched Reliance Dual Advantage Fixed Tenure Fund-I-Plan K, a close-ended income scheme.
The scheme seeks to generate returns and reduce interest rate volatility, through a portfolio of fixed income securities that are maturing on or before the maturity of the scheme along with capital appreciation through equity exposure. The tenor of the plan is three years.
The new issue closes on 24th May. The minimum investment amount is Rs5,000.
Crisil MIP Blended Fund Index is the benchmark index. Shailesh Raj Bhan and Anju Chajjer are the fund managers.
Kotak Mahindra Mutual Fund new issue closes on 17th May
Kotak Mahindra Mutual Fund has launched Kotak FMP Series 47 (24M), a close-ended income scheme.
The investment objective of the scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. The scheme will invest in debt and money market securities, maturing on or before maturity of the scheme. The tenure of the scheme will be 24 months.
The new issue closes on 17th May.
CRISIL Short Term Bond Index is the benchmark index. Deepak Agrawal and Abhishek Bisen will be the fund managers for the scheme.