04.03.2013 - India: Why commodity trading is good for economy
The new transaction tax on commodity trading is bad economics, as these columns have argued many times. There are substantial differences between the equity and commodity markets, including the fact that the latter is a pure hedging play. Therefore, the "what's fair for equity is alright for commodity" argument doesn't apply. But having done the bad thing, the Budget did a semi-good thing. After decades of being treated as a vice, commodity trading has finally been officially declared respectable. The Budget says commodity futures trading will not be considered a speculative transaction..............................................Full Article: Source
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