NCDEX drops names from KP-linked circular

The National Commodity & Derivatives Exchange (NCDEX) has modified its circular that named 30 individuals and firms allegedly linked to stock broker Ketan Parekh and warned its members against associating with any of them.

The modified circular has dropped all the names and instead directed its members not to deal with entities/individuals that have come under the Securities & Exchange Board of India (Sebi) scanner.

The list, issued by Sebi, has close to 100 entities and individuals with whom the members are advised not to have any association.

"We received several calls from individuals and representatives of entities to strike off their names from the list. We are now telling our members to stay away from entities and individuals that have been under the Sebi scanner," an NCDEX official said.

NCDEX has not fixed any deadline for members responding to the directive. "This is an ongoing process. Whenever we find a link with KP and associates, we would inform the Forward Market Commission. However, there has been no evidence of any link with KP and associates so far," the official added.

In a circular issued on May 9, NCDEX had issued the first circular saying that "KP may be using the services of the members of national commodity exchanges for trading in commodity markets. We, therefore, advise the members to be cautious and ensure not to deal with any of the entities/ individuals associated with the group."

This follows the alert sounded by the commodities market regulator, FMC, against KP's alleged involvement in mentha oil trade directly and through some closed associates on exchanges.

The Multi Commodities Exchange of India (MCX) had issued 29 names allegedly linked to KP.