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FMC panel finds irregularities in guar futures

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Press Trust of India New Delhi
Last Updated : Jan 21 2013 | 1:39 AM IST

Commodity markets regulator Forward Markets Commission (FMC) has found irregularities in guar futures trade in a probe conducted by its panel.

"The Commission has issued show-cause notices to five members (brokers)," the FMC said on its website.

The regulator said that 30 other entities and clients/non-clients have been asked to produce additional documents to show proof of sourcing of funds.

The interim report submitted by the panel reveal certain irregularity in the functioning of some of the members of the exchange and their clients in respect of guar futures, it said without revealing the name of the exchange.

The panel has detected irregularities in transfer of funds to exchange's client (individual trader) account maintained by brokers from such entities who are not clients of the broker.

It has also found irregularity in transfer of funds from common client account to non-client and member facilitating the margin-funding of clients from funds borrowed through member's group companies, the FMC said.

Guar gum and gaur seed trading came under the scanner of FMC as prices have increased sharply by more than 70% in last few weeks.

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First Published: Jan 06 2012 | 2:34 PM IST

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