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Tuesday, July 5, 2011
Markets to the Commission (FMC) has taken to Kailash Gupta, founder of the National Multi Commodity Exchange (LOEL), eight days to respond to allegations of financial and administrative irregularities.
Gupta was to appear personally before the regulator of commodity markets on Monday to defend against the charges made by the FMC in a showcause notice on 22 June. However, Gupta asked the Commission to provide him with documents he had invoked so that the charges against him before he could respond. While the FMC Gupta stressed that staff must appear before the committee and collect documents, Gupta, according to the president of FMC, has authorized an attorney to collect the documents. "We decided to give him eight days to collect the documents ... but he has to appear before the committee staff to defend themselves," said FMC Chairman BC Khatu. "The documents requested to be ready." FMC regulates futures trading in commodities, while the LOEL is one of the five national stock exchanges that are under the jurisdiction of the regulatory authority.
It is understood that some of the charges in the 67-page showcause notice relating to market making and generate volumes of false sharing for the benefit of Gupta and his family. When asked if collected documents of the FMC, Gupta said he had no knowledge that is given eight days to appear before the regulator. "I so far have not received any official communication from the regulator (the granting of eight days) after the requested documents for the last month. My future course of action will depend on whether I receive the same," said Gupta . He added that he had appointed a representative to collect the documents from the regulator.
Until the case, Gupta has asked the FMC LOEL is not involved in day to day operations. However, the attempt to change to increase their total points for the mandate of Rs 100 crore in September can be blocked until the case is resolved. Of the Rs 100 crore, the exchange has to raise its paid up capital of a little over 19 crore rupees to Rs 50 crore. It is known that the hearing of the dispute with CERC FMC on the regulation of futures electricity leaves the audience in the Supreme Court on Wednesday. Earlier, the Bombay High Court ruled neither FMC nor the electricity regulator has exclusive jurisdiction over future of electricity. After this, CERC special leave petition filed in the apex court in May, after which FMC also filed a SLP independently.
FMC is also considering a request for an extension to NSE for September shed 6.1% in NCDEX commex. The stock market is 11.1% in NCDEX to be reduced to 5% according to a rule of government.
"We've been hearing that NSE has found buyers for their participation in excess. We found a buyer to collect 1% is what we understand and are considering your application for a further extension," said Khatu. NSE had approached the Union ministry of consumer affairs in March, requesting an extension to cut its stake in excess.
Gupta was to appear personally before the regulator of commodity markets on Monday to defend against the charges made by the FMC in a showcause notice on 22 June. However, Gupta asked the Commission to provide him with documents he had invoked so that the charges against him before he could respond. While the FMC Gupta stressed that staff must appear before the committee and collect documents, Gupta, according to the president of FMC, has authorized an attorney to collect the documents. "We decided to give him eight days to collect the documents ... but he has to appear before the committee staff to defend themselves," said FMC Chairman BC Khatu. "The documents requested to be ready." FMC regulates futures trading in commodities, while the LOEL is one of the five national stock exchanges that are under the jurisdiction of the regulatory authority.
It is understood that some of the charges in the 67-page showcause notice relating to market making and generate volumes of false sharing for the benefit of Gupta and his family. When asked if collected documents of the FMC, Gupta said he had no knowledge that is given eight days to appear before the regulator. "I so far have not received any official communication from the regulator (the granting of eight days) after the requested documents for the last month. My future course of action will depend on whether I receive the same," said Gupta . He added that he had appointed a representative to collect the documents from the regulator.
Until the case, Gupta has asked the FMC LOEL is not involved in day to day operations. However, the attempt to change to increase their total points for the mandate of Rs 100 crore in September can be blocked until the case is resolved. Of the Rs 100 crore, the exchange has to raise its paid up capital of a little over 19 crore rupees to Rs 50 crore. It is known that the hearing of the dispute with CERC FMC on the regulation of futures electricity leaves the audience in the Supreme Court on Wednesday. Earlier, the Bombay High Court ruled neither FMC nor the electricity regulator has exclusive jurisdiction over future of electricity. After this, CERC special leave petition filed in the apex court in May, after which FMC also filed a SLP independently.
FMC is also considering a request for an extension to NSE for September shed 6.1% in NCDEX commex. The stock market is 11.1% in NCDEX to be reduced to 5% according to a rule of government.
"We've been hearing that NSE has found buyers for their participation in excess. We found a buyer to collect 1% is what we understand and are considering your application for a further extension," said Khatu. NSE had approached the Union ministry of consumer affairs in March, requesting an extension to cut its stake in excess.
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