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'FMC sends observers to Kochi for checking delays in NCDEX'

Last Updated: Saturday, November 10, 2012 - 20:26

Kochi: The Forward Market Commission (FMC) has sent two observers to look into "undue" delays and quality issues at the NCDEX Exchange here, according to Cochin Hill Produce Merchants Association here.

The observers arrived here from Mumbai yesterday and launched a probe against the NCDEX and the buyers cartel who are allegedly involved in price manipulation of pepper and rigging test of results to suit their "malafide intentions", the Association said in a statement here.

The FMC observers should also monitor deposits, test results and analysis time as well as entries into the DP (Depository Participatory) accounts and the time taken by NCDEX to complete formalities during the November and December deliveries, the Association said.

NCDEX had closed the warehouses for accepting delivieries of pepper from November 3-7. Black pepper lots deposited, accepted and passed have not been given credit into demat account from October 29 onwards, it said.

The observers will also look into undue delays and quality issues at the NCDEX exchange, it added.

When contacted, NCDEX Chief Business Officer at Mumbai Vijay Kumar said: "All deliveries are guaranteed in terms of quality. Every month we do about a 1 lakh tonnes of deliveries. So far no goods that have been lifted have been found to have not met with the specifications".

On closing down of the warehouses for a few days, he told PTI," When we get a report, we check whether there is factual truth in the complaint. The warehouses were closed to check that. We have not found anything amiss at any of the warehouses".

The Association also wanted FMC to appoint independent surveyors panel not attached to the NCDEX exchange for sampling, testing and analysis of deposits for free and fair test results, the statement said.

NCDEX should be directed by FMC to extend cutting/ maturity date of November contract by five days up to November 26 on account of undue delay caused for acceptance of deposits, the Association added.


First Published: Saturday, November 10, 2012 - 20:05
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