NCDEX will levy risk management fee on every overnight fresh open position created on select commodities. A levy of Rs 5 per lakh on incremental open position will be collected from October 15.

The risk management fee will be levied on Group A commodities such as soya oil, RM seed, Castor seed, Chana, Guar, Kapas and spices. The fresh open position value will be computed daily based on contract wise incremental open positions and will be collected as exchange dues. However this fee will not applicable on intra-day transactions.

The exchange currently does not levy any risk management fee although it incurs substantial amount of expenditure to maintain necessary infrastructure and process for the clients keeping open position at end of the day, said the exchange.

Justifying the fee, Samir Shah, Managing Director, NCDEX said the risk management fee is levied only on the group where the exchange has to put more efforts and incurs more expenditure to facilitate risk management service. The fee would help the exchange provide better sservices to clients, he added.

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