Baburaj is NCDEX chief business officer

Narendra Gupta not to handle any core functions

National Commodity and Derivatives Exchange's (NCDEX) chief operating officer, Meher Baburaj, has taken addition charge as chief business officer.

Baburaj succeeds Narendra Gupta, who was divested of core functions after Forward Markets Commission asked NCDEX to relieve officials involved in changing contract terms of urad and chana on January 19.

As per the FMC directive, Gupta will not look after any core function of the NCDEX. He is now involved with research, knowledge, and information dissemination work.

On January 19, NCDEX said the final settlement price of January urad and chana contracts will be based on the average price polled over the last five days, including expiry date.

Normally, settlement price is based on the price prevailing in the spot market on day of expiry.

Reacting to the decision, the FMC had asked the exchange to revert to the previous contract specification, which the exchange did.

As per the directive, the NCDEX has also formed a committee to investigate whether there was any malpractice in changing the method of determining final settlement prices of urad and chana.

According to the directive issued by the regulator, the committee is expected to examine if there was any malafide intent, disruptions in spot, and futures prices.

The enquiry panel comprises Justice P N Bhagwati; P S Shenoy, former managing director and chairman of Bank of Baroda; and M R Mayya, former executive director, Bombay Stock Exchange.

The NCDEX official said no official from the exchange is part of the enquiry committee to ensure impartial probe.

Asked when the committee will submit its report, the official said, "The committee is still probing into the matter and will come out with the report soon."