Unregulated or dabba market, which is estimated to be about 8-10 times of the regulated commodity derivatives market, subsequent to the imposition of CTT (As per a report by Nielsen, prior to the imposition of CTT, Dabba trading accounted for  at least 3 times the official trades) will be curbed .  Moreover, down the line, in a year or so, new products such as options, indices, weather derivatives and freight can be introduced, MCX has been ready to introduce them since the last few years.

The other benefit of FMC and SEBI merger is that securities brokers who have memberships of commodity futures through their subsidiary companies will benefit, as it will reduce the duplication in a number of issues as well as decrease the cost of transaction and compliance. No relief on the CTT front has disappointed the market, and I hope that the Government will revisit this to provide a level playing field to the Indian commodity futures market to improve hedging and hedging efficiency in non- Agri commodities. However, on the whole, I believe, this budget will lead to the opening up of a new chapter in the Indian financial market.”

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