The Hindu Business Line : MCX doubles fee structure for members

Revised norms
Security deposit to be maintained with the exchange hiked from Rs 50 lakh to Rs 2 crore for institutional trading-cum-clearing members.
To collect transaction fee of Rs 1 lakh in advance.

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Mumbai Jan. 19 Commodity futures exchange MCX on Friday doubled the admission fees for its members with effect from May 1. The admission fees for institutional trading-cum-clearing member (ITCM) has more than doubled from Rs 10 lakh to Rs 25 lakh, while professional clearing members (PCM), who were not paying any fees till now, will be charged Rs 10 lakh.

Trading-cum-clearing members (TCM) with deposit will pay Rs 20 lakh (Rs 10 lakh) and TCM without deposit will shell out Rs 10 lakh (Rs 5 lakh).

Similarly, the security deposit to be maintained with the exchange has been hiked from Rs 50 lakh to Rs 2 crore for ITCM, Rs 1 crore (Rs 50 lakh) for PCM, Rs 50 lakh (Rs 65 lakh) for TCM with deposit and Rs 30 lakh (Rs 15 lakh) for TCM without deposit.

Annual subscription

While there is no change in annual subscription fee for PCM, it has gone up to Rs 1 lakh (Rs 50 lakh) for ITCM and Rs 75,000 (Rs 50,000) for TCM. The raise in the subscription fee will not be applicable to the existing members who pay up before May 1.

Another national commodity futures exchange is also considering revising its fee structure. When contacted Mr Ravi Kumar, MD, NCDEX said: "We have no immediate plans to revise our fee structure, but we will look into it at a later stage".

In a move to discourage inactive members, MCX will be collecting Rs 1 lakh transaction fee in advance from all the members. "The members can adjust their monthly transaction fee against the advance they have paid. The active will not be hit by this move because they have to pay monthly transaction charge will the advance paid will be lying idle as far as inactive members are concerned," said an MCX official. The existing members paying the fee before April 30 will be charged Rs 75,000 as advance transaction fee.

The minimum net worth for TCM has been revised from Rs 50 lakh to Rs 75 lakh and for ITCM it will be Rs 1 crore (Rs 50 lakh). However, the minimum net worth for PCM remains the same at Rs 500 lakh.