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MCX: IBMA not a member, don't owe any money to it

The filing added that as on date, the exchange does not have any open position or pay-in/pay-out obligations with respect to IBMA

Press Trust of India  |  New Delhi 

Jignesh Shah
Jignesh Shah

Commodity exchange MCX today said the Indian Bullion Market Association (IBMA), crisis-ridden NSEL's subsidiary, is not a member of the exchange and the bourse does not owe any amount to it.

"IBMA is not a member of MCX and they had traded in the capacity of a client. As per the company's records, IBMA volume as a percentage of total exchange turnover was 0.09 per cent in FY 2012-13 and 0.17 per cent in FY 2013-14," MCX said in a filing to the BSE.

The filing added that as on date, the exchange does not have any open position or pay-in/pay-out obligations with respect to IBMA.

Following media reports, MCX filed the clarification that commodity market regulator Forward Commission (FMC) has sought information from it about the trade and exposure details of IBMA.

Both National Spot Exchange Ltd (NSEL) and MCX are promoted by the Jignesh Shah-headed Financial Technologies India Ltd (FTIL).

NSEL has 60.88 per cent equity in IBMA. NSEL has to pay Rs 1,170.09 crore to IBMA, which in turn has to repay to its several clients, including Sahara Q Shop Unique Products Range Ltd.

FMC had also said that the total amount which NSEL owes should be proportionately distributed to various members including IBMA.

NSEL is facing the problem of settling Rs 5,600 crore dues after it suspended trade on July 31, following the government direction in the wake of violation of certain rules by the exchange.

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First Published: Fri, August 30 2013. 18:47 IST