SEBI, in the process of fixing blame on commodity brokers, has turned the spotlight on the Forward Markets Commission for allowing the spot exchange to get away with flouting the rules.
Over the past few months, the Securities and Exchange Board of India has put out a series of orders against commodity brokers involved in the National Spot Exchange scam. Almost identically worded, the orders recommend cancellation or suspension of their commodity broking licences. Hundreds of brokers have been affected, among them big names such as Kotak Commodity Services, Nirmal Bang Commodities and Religare Commodities.
The scam itself dates back a decade to when the National Spot Exchange was abruptly stopped by the Forward Markets Commission, then the regulator of commodity markets, from offering spot contracts. The FMC said the exchange …
Surendar helps lead the newsroom at The Morning Context as executive editor. Over the years, Surendar has worked in industries from pharmaceuticals to diamonds, as well as a stint as an equity analyst. In his long career as a business journalist, he has led teams at The Times of India, India Today and Fortune India. He was part of the founding team at Forbes India and interned at and published in The Times, London.
Executive Editor
surendar@mailtmc.com
Mumbai