Central Govt. Gives FMC Power to Ensure NSEL Settles Dues..!

The central government on recently issued a notification empowering the commodity derivatives regulator Forward Market Commission (FMC) to look into the. Rs. 5,600 crore-settlement issue between NSEL & investors. We have issued the notification.With this the FMC will take the overall supervision of the matter. We have made it clear that if they need any amendment in law or / any reform we will do it, Consumer Affairs Minister Mr.  K.V. Thomas told.

The minister said that now with the issue under the FMC review the regulator will take its due course of time to settle the issue.Investors need to be assured & not panic. We have taken a stock of the situation,  he said. The expected move has come after NSEL suspended trade in spot contracts & deferred settlements. Acknowledging the issuance of the notification, Mr. Ramesh Abhishek, Chairman, FMC, said  that the necessary steps would be taken. 

Issued by the ministry of consumer affairs, food & public distribution, the notification issued on Tuesday said that the settlement of all outstanding one-day forward contracts at NSEL shall be done under the supervision of FMC & any order or direction issued by FMC in this regard shall be binding upon the NSEL and any person, intermediary or /  warehouse connected with NSEL and for this purpose, the FMC is authorised to take such measures, as it deems fit.In addition, the notification said that to protect the interests of commodity market participants, no trading in the existing e-series contracts & no further or fresh one-day forward contracts in any commodity shall be undertaken on NSEL without the prior approval of the central government.

On Monday, top commodity brokers Mr. Anand Rathi, Chairman, Anand Rathi Commodities, Mr. Sunil Sarda, MD, Systematix Shares and Stocks,and BK Sabharwal, President,Commodity Participants Association, met the minister demanding assurance of getting the settlement at the earliest