FMC asks bourses to bear arbitration expenses of clients
New Delhi: Commodities market regulator FMC has asked five national bourses not to charge any fee or ask for deposits from investors to refer their grievances for arbitration, if the claim is not more than Rs 10 lakh.
At present, clients are required to pay fee or deposit some money with the commodity exchanges to refer their unresolved dispute with brokerage firms for arbitration.
In a directive issued on January 30 to five national bourses, the Forward Markets Commission (FMC) said: "The Commission has decided that the clients should not be charged any fee, or asked to make any deposit with the exchange if the amount of their claim or counter claim is up to an amount of Rs 10 lakh and that such expenses shall henceforth be borne by the commodity exchanges concerned."
The decision has been taken in the backdrop of increasing number of investor grievances in the commodity futures market, FMC said, adding the circular should be implemented with immediate effect.
FMC said the move will strengthen the investor protection in the commodity futures market and ensure that grievances of clients trading in this market are redressed expeditiously and in a cost-effective manner.
MCX, NCDEX, NMCE, ICEX and Ace Derivative are the five national commodity bourses in the country.
These exchanges were also directed to bring the provisions of the circular to the notice of their brokerage firms and also disseminate the same through their websites.
The regulator asked exchanges to make amendments to the relevant bye-laws, rules and regulation for the implementation of this circular.