FMC cracks down on errant members

FMC has also asked the exchanges to suspend the member for a week who is breaching the open interest limit by more than 2 per cent of the prescribed limit continuously for more than 3 times in a month. The member will also be fined a maximum of Rs 10,000 for every violation.

The exchanges have been told to devise their own norms to deal with the habitual defaulter within the 2 per cent prescribed limit.

The penalty collected will be credited to Investors Protection fund of the exchange.

The exchanges have been told to implement the new strictures at the earliest and compliance be informed to Forward Markets Commission by July 31, 2006.