Sebi contemplating action against commodity manipulators

The regulator has collected information from exchanges as well as through surveillance reports to prepare a case for action on irrational price movements

After Income Tax Department action against commodity traders, including some based in Indore, the Securities and Exchange Board of India (Sebi) may also take action against violators of commodity market rules.

"By now, there has been no joint action but we do share information with Sebi officials and other departments," said a senior commercial officer with the markets regulator, speaking on condition of anonymity.

Previously, too, Sebi had sought reports of IT raids on commodity traders, hence action cannot be ruled out if any connection with commodity and futures market manipulation is found, this official added. Sources familiar with the developments said that the commodity markets regulator -- the Forward Markets Commission (FMC) was earlier merged with Sebi -- has also collected information from exchanges as well as through surveillance reports from its online system. It is now preparing a case for action and irrational price movements in chana, coriander and other commodities over the past few months are being investigated. 

Earlier this month, Indore-based pulses trader and commodity brokers Manoj Agrawal and Arihant Futures and Commodities Ltd were raided by the I-T department for tax evasion and gains made by manipulation of pulses' prices.

The raids were coordinated from Delhi and the documents have been submitted there, said I-T department officials.

During the same week, the I-T department conducted nationwide raids at more than 57 places in New Delhi, Mumbai, Indore and Chandigarh.

Recently, an I-T team surveyed a soymeal and soyoil broker's office premises in Chawni, Indore. According to sources, around Rs 7 crore were surrendered by the firm after the raids.