NCDEX to fine brokers for delayed reporting of complaints

The National Commodity and Derivatives Exchange (NCDEX) has imposed a penalty of Rs 5,000 on commodity brokers who fail to furnish information on client complaints to the exchange within 30 days.

"In the event of non-submission or delay of 30 days or more in providing any information or documents as sought by the Exchange in respect of any complaint/dispute raised by any client of such member (broker), a penalty of Rs 5,000 per instance will be levied," the NCDEX circular said.

It said that the exchange has been noting such delays in information submission, and introduced the penalty system to bring about early resolution of disputes between commodity brokers (members) and individual traders (clients).

"Repeated violations shall be viewed seriously for appropriate action under rules and by-laws of the exchange, which may include higher penalty," it noted.

According to official data, the turnover of NCDEX was Rs 1,08,171 crore between April 1 and May 15.