UNANSWERED QUESTIONS ABOUT FMC RECOMMENDATION

FOR MERGER

AGENDA

INTRODUCTION

FMC MEETING WITH NSEL, BROKERS & DEFAULTERS

FMC: ACTION REPORT (August 2013 to February 2015)

WRAP UP

INTRODUCTION

On 27th April 2012, Department of Consumer Affairs (DCA) had issued show cause notice to NSEL.

On 12th July 2013, in regards whether views of FMC are correct or NSEL is correct, DCA had written to close all open position with immediate effect.

DCA also noted that, if NSEL had committed violations then similarly NCDEX Spot Exchange could also have violated the exemption conditions.

FMC MEETING WITH NSEL, BROKERS & DEFAULTERS

On 4th August 2013, FMC had a meeting with NSEL, Brokers and Defaulters to ascertain the situation.

Many Defaulters agreed to pay the amount in tranches.

On 6th August 2013, FMC got all the required powers to Act against NSEL, Brokers, Trading Clients, and Defaulters.

FMC: ACTION REPORT (August 2013 to February

2015)

WRAP UP

FMC claims almost everywhere that trading on NSEL platform was illegal contrary to the reply filed by Ministry of Consumer Affairs in a Public Interest Litigation.

Even so, then, as Forward Markets Regulator, why ‘NO ACTIONS’ was taken by the FMC against the Brokers and the Trading Clients who traded in alleged ‘illegal’ forward contracts.