MCX comes down hard on abnormal trading

The Multi Commodity Exchange of India (MCX) will impose an additional penalty of Rs 100,000 on members found guilty of indulging in abnormal trades in multiple instances, according to the release issued by the exchange.

According to existing norms, members found guilty of abnormal trades pay a penalty of Rs 10,000.

The additional penalty came into effect from March 8.

Abnormal trades are those that have been executed at abnormally high price differences in illiquid commodities between different or same client of the same member or between two members.

The exchange has said that it may also take further disciplinary action, which includes suspending offending members from trading.

MCX also warned members that it must put in place proper mechanisms to prevent such trades.

To spend Rs 5 crore on ticker boards
MCX is likely to spend Rs 5 crore from its initial public offer proceeds to interconnect 175-200 Agricultural Produce Marketing Committees, according to the company's draft red herring prospectus filed with the Securities and Exchange Board of India.

MCX will sell 10 million equity shares of face value Rs 5 each in the IPO.

At present, seven APMCs have the exchange's ticker boards that disseminate commodity futures prices.

The sum will be spent over three years ending March 2011.

The money will be spent on infrastructure like site, computers, and satellite connectivity and also for recurring costs like internet and maintenance.