 "UCX promoters, MD issued 'fit and proper' notice by FMC")
The Forward Markets Commission (FMC) has issued a notice to promoters of Universal Commodity Exchange (UCX) and its managing directors, on the charge that they are 'not fit and proper' to hold stakes in or run a commodity exchange.
The regulator this week issued notices to Ketan Sheth, promoter, through his listed entity, Commex Technology, another group company and Praveen Pillai, who was managing director of the exchange.
The exchange has been defunct for a year. Last July, it discontinued trading after a sharp drop in volumes and an investigation by FMC.
KPMG found diversion of money from the Settlement and Guarantee Funds. The exchange has since returned the margin money and that kept for security deposits to the members.
In another development, FMC has also asked UCX to explain why its licence for commodity derivatives trading should not be cancelled. This follows the rule that if there is no trading for 12 months, such a notice may be issued and the licence can be revoked. FMC has issued similar notices on another defunct commodity exchange, ICEX, inoperative for over a year.
The regulator this week issued notices to Ketan Sheth, promoter, through his listed entity, Commex Technology, another group company and Praveen Pillai, who was managing director of the exchange.
The exchange has been defunct for a year. Last July, it discontinued trading after a sharp drop in volumes and an investigation by FMC.
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The regulator had asked the promoters and management to explain complaints of diversion of funds. Later, it asked KPMG to do a forensic audit.
KPMG found diversion of money from the Settlement and Guarantee Funds. The exchange has since returned the margin money and that kept for security deposits to the members.
In another development, FMC has also asked UCX to explain why its licence for commodity derivatives trading should not be cancelled. This follows the rule that if there is no trading for 12 months, such a notice may be issued and the licence can be revoked. FMC has issued similar notices on another defunct commodity exchange, ICEX, inoperative for over a year.