Multi Commodity Exchange (MCX), the leading commodity derivative exchange and a group entity of the Financial Technologies (FTIL), clarified on Friday that the Indian Bullion Markets Association (IBMA) is not a member of the exchange and that it does not have any obligations with respect to IBMA.
The press release said that “...IBMA is not a member of MCX and they had traded in the capacity of a client. As per the company’s records, IBMA volume as a percentage of total exchange turnover was 0.09% in FY13 and 0.17% in FY14.”
The clarification followed media reports that the Forward Markets Commission has sought details from MCX on trade and exposure details of IBMA on its platform. Such activity violates rules laid down by the consumer affairs ministry, which bars shareholders of an exchange from having any trading interest on the exchange.
While Jignesh Shah-led FTIL is the holding company of NSEL, it also has 26% stake in the MCX, which is a leader in the precious metals, base metals and crude oil futures trading. In a similar instance, Jaypee Capital surrendered its licence to trade on the NCDEX after FMC's intervention as it held 23% stake in NCDEX.