The Forward Markets Commission (FMC) has suspended the membership of Rank Commodities Pvt Ltd (RCPL) for violating the Forward Contract (Regulation) Act and charged the company under the Income Tax Act and FEMA.
RCPL, a Mumbai-based commodity trader and member of the Multi Commodity Exchange (MCX) and the National Multi Commodity Exchange (NMCE), was found guilty along with its two directors Hemal Jayantilal Thakkar and Sunil S Mirpuri of various offences.
“After carefully considering the facts and circumstances, we are convinced that the member and its directors and the complainant Hemal Jayantilal Thakkar were engaged in activities that were prohibited ....and, as such, the charges were well established,” a FMC order said.
“We are also convinced that the conduct of the member, its directors, including the complainant, besides being in violation of the FC (R) Act, 1952, was not in the interest of trade and may put the money of several innocent persons to grave risk which makes them a risk in the commodity derivatives market.”
The FMC has prohibited the company and its two directors to enter into any forward contracts for the sale or purchase in its own name or any other member of a recognised commodity exchange of "goods or class of goods for two years.
The regulator acted on a complaint filed by Thakkar against RCPL and its director Sunil S Mirpuri, one of the directors of the company, alleging misuse and misappropriation of funds and non-compliance with the bye-laws.
“The dealings of the parties were highly objectionable and also in violations of other statutory acts viz Income Tax Act and FEMA, which requires to be referred to concerned agencies for taking action under their relevant laws,” the order said. The no objection certificate (NOC) for setting up a wholly-owned subsidiary abroad granted to RCPL will also be reviewed.
Talking tough against the two directors of the company, the FMC order said: “Both have committed blatant and gross irregularities which make them a risk to the commodity derivatives market.”
Mirpuri during his statement on October 14, 2010 had submitted a document to the FMC which mentioned that Thakkar in her writing, allocated profits by transferring profit from Narain Vaswani’s account to Mirpuri’s family accounts.
Surprisingly, both Thakkar and Mirpuri were together in the initial years. But, later they were found jointly engaged in unethical and prohibited practices in the commodity derivatives market, the order reveals.
