Tuesday, April 15, 2008

CCT Fear Brings Down Turnover Of Commexes

NEW DELHI: The turnover of commodity bourses has dropped sharply on transaction tax proposal and reports that the government may ban futures trading of more commodities. Analysts fear the turnover may get eroded by another 20-30% once commodities transaction tax (CTT) comes into effect.

The daily volume of trade on MCX, which was at Rs 16,726.03 crore on February 28, a day before Budget 2008 was presented, has come down to Rs 12,448.52 crore as on April 11. In NCDEX, the volume dropped to Rs 1,939.43 crore from Rs 2,665.54 crore in the same period.

Finance minister P Chidambaram had proposed CTT of 0.017% while presenting the Budget. Although the Budget is yet to be passed in Parliament, all eyes are on the date when the CTT would come into effect, an analyst with a Mumbai-based commodity brokerage house said.

No comments: