FMC allows ICEX to levy flat transaction fee till May

The Forward Markets Commission (FMC) has allowed the Indian Commodity Exchange Ltd (ICEX) to levy a flat transaction fee of Re1 per Rs100,00 turnover for three more months, ie, till May.

ICEX, a national-level exchange, which started operation on 21 November, was initially allowed to charge a flat transaction fee of Re1 for a turnover of Rs1,00,000 until February 26.

"The Commission, on 12 March, permitted the ICEX to levy transaction charges of Re1 per Rs1,00,000 turnover for a further period of three months up to 26 May 2010," FMC said in a statement.

The FMC, meanwhile, has asked commodity futures exchanges to put in place a common penalty structure for defaulting brokers in order to protect client interests.

Currently, exchanges levy varying charges for the similar offences committed by various members.

The offences include non-segregation of client funds by brokers, delay in payment of funds or transfer of commodities to clients' accounts, non-obtainment of member-client agreement and incomplete know your client procedure.