Kailash Gupta, promoter of India’s first commodity derivatives platform, the National Multi Commodity Exchange (NMCE), has sought intervention from Union food and consumer affairs minister K V Thomas, against ‘harsh’ action by the Forward Markets Commission (FMC).
The commodity derivatives markets regulator had issued a showcause notice to Gupta on several charges. Sources said Gupta approached the minister early this week, alleging “discrimination” against NMCE over other exchanges on similar charges of financial irregularities. Thomas’ ministry is the parent one at present for FMC. Gupta was asked to reply in person by July 4. He had sent a legal representative, which was not acceptable to FMC.
“No comment,” said Gupta, when asked about approaching the minister, adding: “In the past, FMC had discriminated against other exchanges, which we are opposing. We will fight at the appropriate level.”
FMC granted Gupta eight more days to present his case personally. “Market making is not the only irregularity we found against him. Gupta has taken personal benefits from the exchange and has also reimbursed his family members’ foreign trips, in addition to many other financial irregularities. Why isn’t he coming to the FMC personally to present his version?” asked B C Khatua, chairman of FMC.
Gupta had asked for a set of documents, based on which the showcause notice was issued to him. FMC told him to collect this when he came in person.
