FMC tells MCX to keep funds intact

“FMC has the powers to issue any order to NSEL that seems fit for that purpose (settlement),” Abhishek added.

On Monday,FMC had a long meeting with the top officials of NSEL and MCX and in the meeting it also directed the exchange to put details regarding its warehouses immediately on its website.

“They have also been directed that as and when the money comes in,they need to first give it to retail clients,” said Abhishek.

According to the data available with the regulator,there are in all 13,000 investors and out of that the number of clients who have invested up to Rs 10 lakh each stands at 7,000.

In the meantime,to prevent a fallout of the on other exchanges regulated by FMC,the regulator has directed the exchanges to call their board meeting,discuss the fallout and take necessary steps.

It is also learnt that the regulator has asked NSEL to explain the sharp fall in the settlement guarantee fund (SGF) from Rs 800 crore to just around Rs 60 crore in just a matter of days.

“The obligation should come down by the same amount but I do not have the details,” said Shah.

A source close to the development raised questions on any decline in the liabilities of the exchange.

“It seems that their liability was higher and they paid this money to bring down their liability. But while they gave the revised liability figure they seem to have given the old figure on settlement guarantee fund. How can you keep the old settlement guarantee fund and revised liability amount?” said the source.