National Commodity & Derivatives Exchange Limited (NCDEX) today said it has decided to introduce one time risk management fee on every overnight fresh open position created on its platform.
The levy of Rs 5 per lakh on incremental open position will be applicable from October 15. However, the exchange has decided to levy risk management fee only on commodities categorised in list "A" group, a NCDEX release said.
Group "A" comprises commodities such as soya oil, R M seed, castor seed, chana, guar, kapas, spices, etc.
NCDEX 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 positions at end of the day, the release said.
Speaking on the move, Samir Shah, MD and Chief Executive of NCDEX, said "every client has different interest of trade or investment in commodity market.
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"We have tried to levy risk management fee only on the group where the exchange has to put more efforts and incur more expenditure to facilitate risk management service. This fee will help the exchange provide better services to clients."
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 in both "A" and "B" group as well as transactions in "B" group commodities, the release added.
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