FMC may now order special audit for MCX: Report

In what could be huge blow to the Jignesh Shah led FT Group, the commodity market regulator may now order a special audit of the Multi-Commodity Exchange of India (MCX) as the Rs 5,600 crore scam at FT-owned National Spot Exchange turns the doubt on other group entities too.

According to an Economic Times report, the commodity market regulator FMC will focus on detailed examination of trades on MCX by related parties, particularly by the FT Group entity Indian Bullion Markets Association (IBMA). The probe may also seek clarity on whether MCX favoured some brokers by lowering or waiving off the margin money requirement.

The report also said that FMC is finalizing a set of new rules on expenditures and disclosures for all commodity futures bourses, where all related party dealings will have to be reported to the board of the exchange.

Story first published: Monday, October 14, 2013, 9:12 [IST]
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