MCX chairman,5 directors quit; bourse says no dues to IBMA

Lotus Refineries,a party to the payment case disputed a move by NSEL proclaiming it as a defaulter.

MCX chairman Venkat Chary and five other directors on the commodity exchange board quit on Friday following the implementation of new guidelines including those that bar any person over 70 years of age to hold a board position.

While Chary and CM Maniar,who was a Forward Markets Commission-approved independent director on MCX,quit due to the age guideline,the exchanges former managing director Lambertus Rutten resigned citing pre-occupations.

FMC nominated independent director Prakash Apte has also resigned with effect from August 31 and has been replaced by Santosh Kumar Mohanty by the regulator.

The development comes on the heels of the National Spot Exchange Limited NSEL defaulting on the second payout for settling Rs 5,600 crore dues after it suspended trade on July 31 following governments direction in the wake of violation of certain rules,PTI reported.

In a related development, Lotus Refineries,a party to the payment case disputed a move by NSEL proclaiming it as a defaulter. The company on Friday said theres no margin receivable from the company while the NSEL is holding over 44,000 tonnes palm oil stock of its client. Lotus,in a legal notice served to NSEL,demanded immediate revocation of the defaulter charge. Lotus Refineries has also conveyed to NSEL that it is willing to settle its alleged obligations,if any,provided the serious disputes and claims raised by it are resolved.

On Thursday,releasing pay-in obligations of 39 clients through 24 members,NSEL said Ahmedabad-based NK Proteins is the biggest defaulter with net dues of Rs 969.89 crore at members level.

MCX,in another filing with the BSE said that the Indian Bullion Market Association IBMA,a subsidiary of NSEL,is not a member of the exchange and that MCX does not owe any payments to it.

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IBMA is not a member of MCX and they had traded in the capacity of a client. As per the companys records,IBMA volume as a percentage of total exchange turnover was 0.09 per cent in FY 2012-13 and 0.17 per cent in FY 2013-14, MCX said in its filing.

NSEL holds 60.88 per cent equity in IBMA and owes it Rs 1,170.09 crore.

PIL against NSEL seeks CBI probe

MUMBAI: A public interest litigation has been filed in the Bombay High Court seeking a CBI probe into the alleged refusal by National Spot Exchange Ltd NSEL to pay dues to 17,000 small investors,claiming it is a scam to the tune of Rs 8,000 crore.

Former BJP MP and president of Investors Grievances Forum Kirit Somaiya has filed the petition.

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The respondents named in the PIL include Union ministry of consumer affairs,food and public distribution,ministry of finance,Forward Market Commission,Central Board of Direct Taxes,the beleaguered NSEL,and its promoter Jignesh Shah. PTI