23.07.2014 - Is Nat'l Multi Commodity Exchange looking to wind-up ops?
It is tough times for the commodities market - after the levy of Commodity Transaction Tax (CTT), and the NSEL fiasco , volumes in the commodity space have dropped by more than 40%. This has forced two commodities exchanges - Anil Ambani promoted ICEX, and Ketan Seth promoted United Commodity Exchange to shut their trading operations over the last one year. Now, the country's third largest commodity exchange, the National Multi Commodity Exchange or NMCE, famous for its rubber trade is also facing threat of a possible closure. NMCE, which was under the FMC scrutiny over related party trades few years back, has been served with a tax penalty of around Rs 15-20 crore. For NMCE whose volumes dropped by 60%, over the last one year, this tax impact will be a major concern as its net worth stands at just Rs 19 crore...............................................Full Article: Source