INSUBCONTINENT EXCLUSIVE:
interest (OI) to a pro rata basis effective February 1, 2019, from a flat structure earlier
They said cost of transaction would rise and drive away hedgers
The NCDEX management said those who saw value in trade clearing function would not have any issues with the revision that was a fraction of
the transaction charges exchanges levy on brokers.
The OI fee was introduced in July 2014
However, with time the market participants attuned to the fee of Rs 4 per lakh per month on OI and on incremental OI created by the client
eg, if a client creates a buy or sell side OI worth Rs 1 lakh on Friday, at the end of day he would be charged Rs 1
If the OI value increases to Rs 1.5 lakh on Monday, the clearing fee at closing would be Rs 1.5
Earlier, he paid Rs 4 on Friday and Rs 2 on Monday
The difference now is that the fee would be levied daily, against on monthly basis earlier, irrespective of whether OI remains steady or
increases.
Kishore Narne, associate director, Motilal Oswal Financial Services, expressed disappointment with the change
We are not happy with so called risk management charges at all, but now with per day charges the whole cost of transaction would increase
There is no such concept anywhere in the world where a client has to pay an exchange to keep his positions
where the NCCL took on counterparty default risk, would not be deterred by the revision in fee
He said many exchanges subsidised the clearing function by recovering high transaction charges from members.
