FMC to probe National Spot Exchange matter: Thomas

As a crisis loomed large over the future of National Spot Exchange Ltd (NSEL), Food and Consumer Affairs Minister K V Thomas today said the commodity regulator FMC has been asked to look into the matter.

Besides, the Ministry of Consumer Affairs and Finance Ministry are closely monitoring the situation, while officials from both the ministries as well as regulatory bodies SEBI and FMC are in constant touch, Thomas told reporters here.

"We have sought information (from FMC) within a day. We will review the situation tomorrow," the Minister said.

NSEL late last night issued a circular suspending trade in all contracts except for some e-series products. This followed a government directive last month asking the exchange not to launch any new contracts due to violation of certain norms in their trading.

"The Department of Consumer Affairs has asked the FMC to seek information from the NSEL regarding the rationale of the exchange for the above decision, its plan of action for meeting the settlement obligations of all the open contracts and other relevant information in this regard," Thomas said.

On receipt of response from FMC in this matter, he said the Department of Consumer Affairs will take necessary action to protect the interests of market participants in NSEL.

"The government is seized of the matter in all its seriousness and the Ministry of consumer affairs and the ministry finance are closely monitoring the situation.

"Senior officials of both the Departments, as also that of statutory regulators like FMC, SEBI etc are in constant touch with one other in assessing the situation," Thomas said.

The government has noted the issuance of a circular by the NSEL suspending trading in all their contracts, other than e-series contracts, and their decision to merge the delivery and settlement of all pending contracts and to defer them for 15 days.