Now Tax hungry Govt want,
spot commodity exchanges!!
Spot commodity exchanges for gold, metals and even energy products like natural gas could see the light of day under the Securities and Exchange Board of India (Sebi) as the regulator.
http://www.business-standard.com/ar...-spot-commodity-exchanges-118042300029_1.html
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They want to move the MCX derivative volume to Cash(spot)! Physical settlement of Gold, Silver even energy products derivative contract may be next!
Sebi is, however, reluctant to regulate spot commodity exchanges. It has already responded to the committee report, saying commodity spot
markets do not fall under the ambit of its regulatory purview. But Govt will force them soon bcoz STT in delivery is much more.
I except new move to cut retailers participation in MCX F&O would start soon after Spot commodity exchange is set up.
So, there might be the physical delivery(in DEMAT) of Crude too! What a shame!
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Actually, spot commodity is not a bad idea. But, the real hidden agenda(to increase STT collection) behind it to move the derivative volume to cash(spot) market using the physical settlement, increasing lot size, max exposure using ITR, etc is a very disturbing idea.
Now the intention is crystal clear.