Indian Bullion Markets
Association (Ibma), an arm of Financial Technologies-promoted National Spot Exchange (NSEL), has stopped trading on the platform of Multi Commodity Exchange (MCX), the latter said on Friday. Ibma was set up in 2009 to represent the bullion trade and industry as a consortium of leading dealers in the former and jewellery merchants. Ibma trade on the MCX was 0.09 per cent of the latter’s volume in 2012-13 and 0.17 per cent so far this year.
Under the Forward Contracts (Regulation) Act, an entity belonging to the exchange’s promoter, directly or indirectly, is not allowed to trade on the exchange’s platform. Ibma is a firm in which MCX promoters hold interest through its subsidiary, NSEL, which currently faces a payment crisis. MCX clarified that the Forward Markets Commission (FMC) had sought information about Ibma’s volume and open interest on the exchange.
As on date, the exchange does not have any open position or pay-in/pay-out obligations with respect to Ibma, said MCX.
Earlier, Jaypee Capital, which holds around 23 per cent stake in National Commodity & Derivatives Exchange, had also traded on this exchange. With FMC’s intervention, it had to surrender its membership licence.
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