FMC asks NMCE to check price manipulation
FMC has directed NMCE to ensure that trade volumes and price of commodity derivatives are not manipulated
New Delhi: Commodity markets regulator Forward Markets Commission (FMC) has directed National Multi-Commodity Exchange (NMCE)—the country’s third biggest commodity bourse—to closely monitor the transactions on its platform to check price manipulation.
“The Commission on February 20 directed NMCE to closely monitor the transactions on the exchange platform and ensure that the trade volumes and price of the commodity derivatives are not manipulated," FMC said in its latest report.
NMCE offers an electronic platform for futures trading in plantation, spices, foodgrains, metals, oil seeds and their derivatives.
FMC, in response to a request made by the leading bourse MCX, has also decided to exempt registration of potato cold storages with the Warehousing Development and Regulatory Authority (WDRA) for the current season to ensure smooth supply and efficient price discovery on the exchange platform.
Highlighting the performance of commodity futures market, the regulator said the combined turnover of commodity bourses fell by 40% to ₹ 95.13 trillion till February of this fiscal, from ₹ 157.82 trillion in the year ago.
There are 17 commodity exchanges in the country, of which MCX, NCDEX, NMCE, ICEX, ACE and UCX operate at national level.
As per FMC data, turnover from bullion dropped by 44% to ₹ 40.83 trillion during April-February period of this fiscal, from ₹ 73.26 trillion in the year ago.
Similarly, the business from energy items fell by 32% to ₹ 23.39 trillion from ₹ 34.41 trillion, while turnover from metals like copper declined by 45% to ₹ 16.46 trillion from ₹ 29.95 trillion in review period.
The turnover from agri-commodities also declined by over ₹ 14.44 trillion till February of this fiscal, as against ₹ 20.20 trillion in the same period last year.
Experts attributed fall in turnover to sluggish trade participation especially after imposition of the commodity transaction tax and the ₹ 5,500 crore payment crisis at NSEL, a sister concern of MCX.
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