ICEX board orders special audit after unnamed letter alleges irregularities

Indian Commodity Exchange (ICEX) is going through a tough period following an unnamed letter sent to the exchange’s board as well as the regulator Securities and Exchange Board of India (Sebi). The board despite unidentified in nature, took cognisance of the letter and understood to have asked the exchange to carry out forensic or a special audit, sources said. 

The purpose of the audit was to find out an allegation in the letter about misuse of liquidity enhancement scheme. Under this scheme, exchange was allowed to give financial incentives to those who help increase liquidity in China contracts. 

The exchange board met today and discussions took place till late evening on how to take the issue forward. However, no details could be ascertained. Board was discussing the fall out if further actions are taken and also how to respond to the regulator when questioned.