FMC asks NCDEX to punish official

Commodity market regulator Forward Market Commission (FMC) has finally cracked the whip on NCDEX for unilaterally changing the terms of running urad and chana contracts. The regulator has ordered the exchange to relieve the senior management official responsible for the valuation from his duties with immediate effect. FMC has left it to the exchange to decide which official will face the action.

‘‘He (the valuation official) should not be allowed to look after any core functions of the Exchange. This does not preclude action against other members of the management team,’’ FMC has said in its order. NCDEX officials were huddled in a meeting till late night to finalise the senior official who will face the FMC’s music.

Currently, FMC doesn’t have the legal powers to impose financial penalties on the exchanges. ‘‘The issue is not about the losses incurred by the participants. Losses and profits are part and parcel of the markets. However, we will deliberate on the matter at a later stage,’’ said Rajeev Kumar Agarwal, member, FMC.