Indian Council for Research on International Economic Relations ICRIERIndia Habitat Centre, New Delhi, India.

Impact of Commodities Transaction Tax on Indian Commodity Futures - Munich Personal RePEc Archive

Trading in commodity derivatives on exchange platforms is an instrument to achieve price discovery and better price-risk management besides helping the macroeconomy with better resource allocation. In the — budget, the Indian government proposed to impose a commodity transaction tax CTT amounting to 0.

The Impact Of Commodity Transaction Tax On Futures Trading In India: An Ex-Ante Analysis

In this context, we examine the relationship between trading activity, volatility and transaction cost for five most traded commodities in India. Results how to get free nx cash in maplestory that there exists a negative relationship between impact of proposed commodity transaction tax on futures trading in india cost and liquidity and a positive relationship between transaction cost and volatility.

Further, the results of structural model support the results of VAR analysis. Therefore, if the government imposes CTT, it would lead to higher volatility seasonal stock market trends lower trading activity affecting market efficiency and liquidity.

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By keyword futures market volatility Commodity transaction tax liquidity. By author RAJIV KUMAR PRAVAKAR SAHOO. Search in World Scientific Google Scholar.

The Singapore Economic Review. PRAVAKAR SAHOO and RAJIV KUMARSingapore Econ.

India’s Commodity Transaction Tax (CTT), What Impacts on Commodity Futures Exchanges? | CTRM Center

PRAVAKAR SAHOO Institute of Economic Growth IEGDelhi University, New Delhi, India. RAJIV KUMAR Indian Council for Research on International Economic Relations ICRIERIndia Habitat Centre, New Delhi, India.

Commodity transaction tax; futures market; liquidity; volatility.