Commodity Derivatives on WebNotes

Commodity Transaction Tax (CTT)

Sat, 16 May 2026 00:00:00 +0000

The Commodity Transaction Tax (CTT) is a transaction-level tax levied on the sale or purchase of certain non-agricultural commodity derivatives on recognised commodity derivative exchanges in India. CTT was introduced by Chapter VII of the Finance Act, 2013 with effect from 1 July 2013 and is structurally analogous to the Securities Transaction Tax (STT) that applies to equity and equity-derivative transactions. CTT is collected by the stock broker or the commodity derivative exchange at the time of the transaction and remitted to the Central Government on behalf of the parties.

CDS/MCX product circle on Zerodha

Mon, 11 May 2026 00:00:00 +0000

Overview

Indian financial markets are divided into distinct regulatory segments, each governed by its own set of SEBI and exchange regulations, and each requiring specific regulatory approvals for both brokers and clients. At Zerodha , the “product circle” refers to the set of market segments a client’s account is enabled to trade in. By default, a Zerodha account is enabled for equity trading on the NSE and BSE – both the cash (equity delivery) and derivatives (equity futures and options) segments. Additional segments, specifically currency derivatives (traded on the NSE’s CDS segment and the BSE’s CD segment) and commodity derivatives (traded on the Multi Commodity Exchange, MCX), require separate activation.

Commodity derivatives (MCX) on Zerodha

Mon, 11 May 2026 00:00:00 +0000

The commodity derivatives segment on Zerodha provides access to futures and options contracts on the Multi Commodity Exchange of India (MCX), the country’s largest commodity exchange by volume. The segment covers metals (gold, silver, copper, aluminium, zinc, lead, nickel), energy (crude oil, natural gas), and agricultural commodities (cardamom, cotton, crude palm oil). Zerodha also offers access to the National Commodity and Derivatives Exchange (NCDEX) for agricultural commodity contracts.

India’s commodity derivatives market was merged under SEBI ’s regulatory umbrella in 2015 after the Forward Markets Commission (FMC) was merged into SEBI pursuant to the Forward Contracts (Regulation) Amendment Act, 2010. This integration brought commodity brokers under the same regulatory framework as equity brokers and enabled equity broker-members such as Zerodha to offer commodity derivatives without a separate licence.

Zerodha MCX membership

Mon, 11 May 2026 00:00:00 +0000

Zerodha Broking Limited is a trading member of the Multi Commodity Exchange of India Limited (MCX), the country’s largest commodity derivatives exchange by turnover. MCX membership authorises Zerodha to execute commodity futures and options contracts on behalf of its clients in segments covering bullion, base metals, energy, and agricultural commodities. Zerodha’s presence on MCX allows retail clients to access commodity derivatives markets that were historically the preserve of commodity brokers, consolidating all trading activity into a single Kite-platform interface.