'Settle arbitration claims of up to Rs 10 lakh'

The Forward Markets Commission (FMC) has directed commodity exchanges to settle traders' arbitration claims of up to Rs 10 lakh immediately. Until now, arbitration amounts were deposited by members and clients to commodity exchanges, which accrued these in investor protection fund (IPF) accounts. In a circular, FMC said, “To strengthen IPF in the commodity futures market and ensure expeditious redressal of clients' trading grievances in a cost-effective manner, the commission has decided clients should not be charged any fee or asked to make any deposit with the exchange if the amount of their claim or counter claim is up to Rs 10 lakh. Such expenses, therefore, should be borne by the commodity exchanges concerned.”