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NT Bureau
Chennai, Mar 9:

        Multi-commodity Exchange (MCX) has revised its fee structure for membership under three categories of members with effect from 1 April 2007.

        The admission fees for TCM (trading cum clearing member), non-deposit based, has been revised to Rs 20 lakh from Rs 10 lakh while for the deposit-based member, it was revised to Rs 10 lakh from Rs 5 lakh.

        Security deposit for TCM has been revised at Rs 30 lakh (non-deposit based) and Rs 65 lakh (deposit based).

        'More companies have come forward to trade in the exchanges to gain competitive edge and also to plan their strategies and business well in advance. The exchange has been receiving lot of enquiries from corporates for membership,' an official at MCX said.

        A trading cum clearing member is entitled to trade on his own account as well as on account of his clients, clear and settle these trades himself.

        A sole proprietor, partnership firm, joint Hindu family, cooperative society, PSU firm, statutory institution or any government of private entity can apply for TCM. 'As the awareness on the need for hedging increases, we see more companies taking part in futures trading to hedge their risks.

        Commodity exchanges such as MCX had undertaken a massive exercise to create awareness on futures trading among all stakeholders,' the official said.

        A Professional Clearing Member (PCM) is an institutional member who is entitled to clear and settle trades executed by other members of the exchange.

        A company or an institution only can apply for PCM. Also, only a company or an institution can apply for membership of Institutional Trading cum Clearing Member (ITCM) who is entitled to trade on his own account as well as an account of his clients, clear and settle trades executed by him as well as of other trading members of the exchange.