23/05/2014
MUMBAI: Commodity exchanges regulator Forward Markets Commission (FMC) has written to the finance ministry , its administrative ministry , to remove the transaction tax on commodity futures trade or CTT introduced in July last year Commodity exchanges regulator Forward Markets Commission (FMC) has written to the finance ministry , its administrative ministry , to remove the transaction tax on commodity futures trade or CTT introduced in July last year because of its adverse impact on volumes and indirectly on price discovery and hedging efficiency, said a person aware of the development.
The thinking within the market , this person said, was that the new government, led by NDA, during whose earlier term commodity futures trading was re-introduced after an almost four-decade ban, might halve the levy from . 10 per lakh on the sell side, along with rationalising the securities transaction tax (STT) in the stock market.
