An exporters forum has approached the Supreme Court requesting that it be made a party to a case related to an alleged derivatives scam.
The case pertains to illegal sale of forex derivatives in violation of RBI and FEMA guidelines by members of the Fixed Income Money Market Derivatives Association of India (FIMMDA).
The request for being made a party to the case has come from the Forex Derivatives Consumers Forum, a body representing exporters who suffered losses as a result of the alleged scam by banks and lenders owing allegiance to FIMMDA.
In its application to the Court, the Tamil Nadu-based forum said that they had suffered "enormous harm and loss" as a result of the "alleged illegal" acts of the members of the FIMMDA.
Requesting the apex court for a CBI inquiry into the scam, the association said that they would be seriously affected if the orders of the Orissa High Court, directing probe by the premier investigative agency is stayed.
Acting on a petition by an Orissa-based businessman, Pravanjan Patra, the High Court had on December 24, 2009, directed a CBI probe into the alleged sale of forex derivatives to exporters in gross violation of foreign currency laws of RBI and FEMA.
However, the Orissa High Court's directive on CBI inquiry was stayed by the Supreme Court on March 15, 2010.
Derivatives are a hedge or insurance covered by banks and financial institutions to protect income and liability.
The forum further submitted in a petition that its members are "gravely prejudiced by the enticing of the petitioner's bank (FIMMDA), selling exotic derivatives product and letting them undergo huge losses and in some cases resulting in closing down of the business".
It has also made its submission before the banking sector regulator RBI, CBI and the Standing Parliamentary Committee of Finance on the irregularities conducted by the banks in the derivatives trading, the association said.
The matter would come for hearing in July after the summer vacation.
