FMC suspends four members

The commodity market regulator has started cracking the whip on members for violating norms. Coming down on members repeatedly violating the prescribed position limits, the Forward Markets Commission FMC, for the first time in recent history, suspended four members from the futures market and warned three other members.

The members are suspended from membership of all the recognised commodity exchanges in the country and also prohibited from entering into any forward contract for the sale/purchase of goods, the FMC said in a statement here today. Amongst those who have been suspended are Sushilkumar Ratanlal Khowal and B.M. Agro Industries Pvt Ltd who have been suspended for a week starting from January 9. Madhya Bharat International Pvt Ltd and Dayal Agro Products Ltd have been suspended for 3 days from January 9 onwards.

8220;The members have been suspended for repeatedly violating the open position limits prescribed by the regulator. The FMC has taken these violations very seriously and has taken action to bring discipline in the fast growing commodity markets,8221; FMC said in a statement. The suspensions have been ordered after giving the parties opportunity to explain their actions, it said.

Beside the above suspensions, FMC has also issued warning to three members including Globe Comex Pvt Ltd, Bhagyashree Commodity and Derivatives Pvt Ltd and Kunvarji Commodities Brokers Pvt Ltd. 8220;The Commission will continue to deal strictly with any violation of the regulatory mechanism being put in place from time to time by the Commission,8221; FMC said.