NCDEX to inform FMC of decision today

The National Commodities and Derivatives Exchange (NCDEX) is yet to take a decision on the Forward Market Commission (FMC) order issued on Thursday. The market regulator, however, expects NCDEX decision on Monday.

Anupam Mishra, director, FMC told Business Standard, "A decision on FMC order is expected on Monday by NCDEX."

NCDEX chief executive officer Narendra Gupta said, "We will inform you as and when decision is taken." Ravi Kumar, MD, NCDEX refused to speak on the FMC order.

On Thursday FMC issued an order regarding violation of settlement price norms for the channa and urad January 2006 contracts by NCDEX and directed it to relieve its senior executive of his duties.

Industry sources suggest NCDEX will have to make decision on Monday and for that exchange may also convene an urgent board meeting. Kumar refused to comment on possibility of a board meeting on Monday.

On January 19, the NCDEX set a final settlement price for channa and urad for the January 2006 contract on the basis of the average of polled prices of the preceding five days, including the expiry day.

This is against the practice, which takes the final spot price on the expiry date as the settlement price. Traders are believed to have lost over Rs 300 crore owing to the NCDEX decision on final settlement price.