The Hindu Business Line : NMCE slashes transaction charges

With effect from January 1, the transaction charges for members having the turnover of over Rs 50 crore will be charged at Rs 6 per lakh per month, according to a circular issued by the Exchange.

"The new transaction charges are lowest and will help to reduce overall cost to the farmers and consumers. At present cash transaction in agri commodities normally costs Rs 4,000-4,500 a lakh, which includes 1.5 per cent to 2 per cent agents commission on each side of sale and purchase and market cess i.e. Rs 1,000 to Rs 1,800 per lakh," said Ms Poonam Gupta, Manager - Business Development, NMCE.

"The identical transaction in futures markets costs just Rs 20 to Rs 80 per lakh including broker's commission. NMCE is committed to offer world-class futures trading and is committed to pass on the benefits to the farmers and consumers.

The rationalisation in transaction chain will help reduce the cost and will boost the economy,'' she said.

NMCE also announced that those aspiring for membership on the exchange can avail of the current fee structure - the most competitive in the commodities market - if applications are received on or before January 21.

The existing rates for membership are being revised from Rs 4.10 lakh to Rs 13.20 lakh.

The new costs include Rs 1 lakh towards admission fees, Rs 1 lakh towards initial base capital, Rs 1 lakh towards trade guarantee fund, Rs 10 lakh towards interest free security deposit (on which traders will get exposure limits) and Rs 20,000 towards annual subscription charges, release said.