After being underweight on domestic agrochemical companies and preferring global plays, brokerages believe that the former may perform better in the quarters ahead. Domestic crop protection companies have faced multiple headwinds over the past year and a half, given high inventory costs, pricing pressures, lower realisations in the generic segment, increased stocks due to lower infestations, and demand-led hits to volumes. Some of the overhang from previous quarters was reflected in the April-June quarter (first quarter, or Q1) of 2023-24 (FY24) as well, with aggregate revenues and operating profit for the sector down 12 per cent and 27 per cent, respectively.
The order says he was the 'highest beneficiary' of NSEL fraud and has proven unfit to handle affairs of any exchange.
On Sunday, exchanges and brokers got support against CTT from the apex commodities market regulator--the Forward Markets Commission. The regulator said that it would take up the demand for CTT withdrawal with finance minister Chidambaram.
The Forward Markets Commission will convene a meeting of 21 regional exchanges in the country to prepare a plan of action for their revitalisation, commission's chairman B C Khatua said.
The Reserve Bank has asked banks to encourage borrowers to hedge agri-products on commodity bourses.
On Tuesday, it stopped trading in e-series contracts in gold in anticipation of the notification to this effect.
New FMC directives for MDs & CEOs; regulator also wants half the directors on commodity exchange boards to be independent.
The consumer affairs ministry has assured the pepper and jeera traders that it would look into their demands.
Commodity markets regulator Forward Markets Commission's new chairman B C Khatua has called for the participation of farmers and non-governmental organizations (NGOs) in the futures market.
Reliance Capital, the financial services arm of Anil Ambani-led Reliance Group, has also listed several other concerns with regard to MXC deal.
Special audit report conducted by the PricewaterhouseCoopers on Multi Commodity Exchange has met with another opposition. Earlier FTIL, the promoter of MCX had opposed its contents and now Venkat Chary who is FTIL's non-executive chairman has sent a notice to PwC. PwC report submitted to the FMC in last April mentioned the names of Key Management Personnel of MCX and the name of Venkat Chary was mentioned in that list. Chary was Chairman, MCX, during that period. Chary who had in past also served as Chairman of FMC objected to the PwC mentioning his name as the key management personal of MCX. He wrote to the audit firm saying that he was FMC-nominated Non-executive Independent Director and Chairman on the Board of Directors of MCX till July 13 when he resigned following revised FMC guidelines which laid down 70 years as the maximum age for Chairman/Director. Chary sighted provisions of Companies act and Section 2(51) of the Companies Act, which defines " key managerial personnel" in relation to a company include CEO or MD, whole time director, CFO, company secretary and other officer as prescribed. "As non-executive independent director and Chairman nominated/approved by the FMC, I did not fall within any of the above categories," said Chary and hence blamed PWC for not showing due diligence in your special Report to the FMC. Chary has sent a notice to PWC asking it to take immediate steps to rectify this error. Since PwC Report was placed in the public domain, "it has caused serious damages to my reputation as a practising Advocate of the Bombay High Court." Chary has asked PWC if remedial action are not taken he will report the case to the Institute of Chartered Accountants of India for professional misconduct under the Chartered Accountants Act, 1949, by showing gross negligence in the in professional duties. Chary has said, "I also intend to resort to the civil and criminal courts for damages/action against PWC." When contacted PwC spokesperson said that, "Our work has been executed to the expected professional standards and we stand by the content of our report submitted to the Forward Markets Commission". Chary is not the first to oppose PWC, FTIL it self had said the report was prepared without giving them chance to respond and have not accepted contents. Recently, Riddhi Soddhi Bullion, had sent a legal notice for mentioning its name as 'indulging in wash trades on MCX.' The leading bullion trader had claimed damages in their defamation suit.
Both Corporate Affairs and Finance Ministries are studying the feasibility of implementing the FMC's proposals.
The FMC had warned MCX that it would not renew contracts, allow new contracts and eventually take away the licence to run the bourse if the commodity exchange does not comply with regulatory norms.
The government last week extended the ban on futures trading in the four commodities till November 30, which was initially meant for four months when imposed in May. The top official regulating India's commodity futures market said FMC had submitted inputs to the government before the decision on the extension was taken. He iterated that there was no direct link between futures trading and price rise.
"The National Exchanges were directed on July 23 to ensure that multiple client codes are not given to a single client," Forward Markets Commission said. A separate sting or suffix may be provided after the unique client code to represent different characteristics and branches of the client, if any, it said, adding that these directions would come in force from January 2009.
The amendments will also pave the way for the entry of institutional investors such as banks into the commodity derivatives market. However, the details will be finalised by sectoral regulators once Parliament clears the Bill.
The board will have to take a decision that he cannot remain a permanent director and also have to decide to whether to amend the article of association of the exchange in this regard.
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FTIL group is in big trouble after over Rs 5,500 crore payment crisis surfaced at its subsidiary NSEL last year.
Trading in agri commodities on Saturdays to be reviewed later; more changes likely in the coming months to align with global pattern.
NSEL, promoted by Jignesh Shah-led Financial Technologies (India) Ltd, is facing the problem of settling Rs 5,500 crore.
NSEL had earlier suspended trading and merged the settlement cycles of all one-day forward contracts.
The government on Tuesday said it is keeping a close watch on the developments in the crisis-ridden NSEL and will take action once reports of the two committees looking into the problems of the exchange are received.
I-T dept investigating black money angle; FM hints against bailout for bourse's investors.
Commodity markets regulator FMC on Wednesday said it has given approval to the Anil Ambani Group to acquire 26 per cent stake in Indian Commodity Exchange from one of its promoters, Indiabulls group.
IIM Lucknow has concluded its 2020-21 final placements.
Deloitte, MCX's is learnt to have objected to PwC pointing out several irregularities in the exchange's expenditure, donations, etc, in its audit report.
Crisis-ridden NSEL on Wednesday declared ten more entities as defaulters after they failed to pay their dues on the second-pay out, taking the number of members who are to pay dues at 19.
The government has also allowed individuals from the private sector to apply for the post
The public sector firm has launched STVs in the range for Rs 23 to Rs 41 for prepaid customers whereas postpaid users have to pay a fixed monthly charge of Rs 20 to Rs 40 to avail the cheaper rates.
Kotak Mahindra Bank has decided to buy a 15 per cent stake in Multi Commodity Exchange (MCX) for Rs 459 crore from Financial Technologies India (FTIL).
The RBI is considering permitting FII and commercial banks to trade on Indian commodity exchanges.
In a reiteration of its stand, Forward Markets Commission (FMC) chief B C Khatua said FMC is open to foreign participation in the market in a limited way and will talk to the Centre in this regard.
In a landmark move, India may allow its expatriates to trade in commodities. The decision is aimed at expanding the country's $750-billion futures market.
After defaulting for a consecutive time in paying its investors, National Spot Exchange Ltd (NSEL) got a Rs 177-crore (Rs 1.77 billion) lifeline from its main promoter, Jignesh Shah-run Financial Technologies.
A Delhi University alumnus with an MBA in finance and a doctorate, Vaish started his career as a banker in 1984, became an academician a few years later and joined the capital market in 1998.
The amendment Bill provides for corporatisation and demutualisation of the existing commodities exchanges and setting up of a separate Clearing Corporation.
Exchange to reply to FMC's letter soon, CEO says buyers can't be declared defaulters where there is 'market disruption'.
The RBI view comes within a fortnight of the sectoral regulator FMC in a report stating that the promoter Shah and promoter company Financial Technologies are not eligible to run the crippled exchange, an order challenged by the group in the Bombay High Court.
Commodity futures market's dream run came to a halt in 2013 as a Rs 5,600 crore scam in Jignesh Shah-led spot exchange NSEL and imposition of transaction tax on non-farm items hampered the growth of business, with turnover estimated to dip by 30 per cent to Rs 125 lakh crore.
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