New Delhi: Commodity market regulator FMC has come out with fresh norms to protect the interest of members and clients of the exchanges which have suspended their trading operations.
The norms comes into force with immediate effect.
National level commodity bourse ICEX and three regional bourses have suspended trading operations as of now, a senior FMC official said.
The norms have been issued as some recognised commodity exchanges have suspended their trading operations due to various reasons, commodity markets regulator FMC said in its latest circular.
"On an appraisal of the situations that have arisen consequent to such suspension of trading and keeping in view the interest of trade and public who trade on the commodity exchanges, the Commission has decided to issue the directives to both national and regional exchanges to protect the interests of members and clients," it said.
According to the norms, FMC said that after the suspension of trading, the trade margin money of clients deposited with the exchange should be refunded within 15 days.
The exchange should publish a public notice on its website as well as in leading national newspaper and a local newspaper within one week from the date of the suspension of trading, inviting complaints and grievances from clients against members, pertaining to trade and settlement related matter or any other matter relating to exchange operations.
The trade participants should be allowed a period of two months to submit their complaints and the exchange should take immediate steps to resolve such grievances within six months from the suspension of trade, it said.
After a period of six months from the date of suspension of trade, FMC said that the exchange should refund the cash and non-cash components of the Trade Margin Capital (TMC) and Base Minimum Capital (BMC) along with other deposits and collaterals, if any, to all the members, provided that there are no other claims against such member.
"The process of refund shall be completed within a period of fifteen days," it added.
FMC said that the membership registration of all members should remain valid even after refunding the TMC and BMC.
"In case of resumption of trade, the membership of such registered members can be re-activated and BMC/TMC collected afresh, as per the bye-laws and rules of the exchange".
If an exchange is not in a position to revive its trading operations within 12 months from the date of suspension of trading, the FMC will issue a show cause notice seeking explaination from the exchange why its registration should not be withdrawn.