Around 20 brokers attended the meeting on Saturday and discussed "how to come out of the several problems faced by the market".
Led by MCX with around 80 per cent of market share, the overall turnover of commodity futures market recorded a steep 32 per cent decline to Rs 74.16 crore between April 1 and November 15 this financial year against Rs 108.80 crore in the corresponding period last year.
A couple of members raised the issue of commodity transaction tax (CTT) that was implemented by the government from July 1. Two participants, however, tried to draw a thin line between NSEL and MCX. Despite being promoted by the same agency, others tried to differentiate the two, saying MCX was strongly regulated, while NSEL was not. Another member said brokers would have to take the initiative to create trust in the commodity ecosystem through encouraged participation in futures market.
"A participant highlighted that the resignation of Jignesh Shah has created a vacuum resulting in the lack of confidence in the MCX. Now, the new management of the exchange will have to take the initiative to bring confidence in the exchange," an source said.
A few participants pointed out that apart from CTT, which may be attributed to 50 per cent fall in volume, frequent margins levy by the regulator Forward Markets Commission and exponential growth in the equity market are responsible for the fall in commodity futures trade.
The deliberations ended with an assurance of the oversight committee to assess on all suggestions and work towards the betterment of the market with greater confidence.