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Multi Commodity Exchange and Sohan Lal Commodity Management, a warehouse service provider have decided to bury their differences after the warehousing company agreed to store the mentha oil marked for delivery on the exchange.
Last week, the exchange had filed a case against SLCM in the Bombay High Court to ensure that the warehouse service provider does not hinder physical delivery of mentha oil devolved on expiry of December contract.
MCX and SLCM would like to clarify that there will be no hindrance or impediment in lifting of mentha oil stocks from SLCM Warehouses or the deliveries thereof on the MCX Exchange platform as per MCX circulars, said both MCX and SLCM in a statement on Tuesday.
In October, MCX de-accredited SLCM’s services after issuing a show-cause notice based on objections raised by SEBI on the warehouse service provider trading on exchange platform, in violation of norms.
Following this, SLCM unilaterally terminated its services to MCX and raised a bill of about ₹2 crore to handle the mentha oil marked for delivery on the exchange’s platform.
MCX then invoked the security deposit of about ₹6 crore given by SLCM. It also appointed Yamada Logistics as the warehouse service provider for mentha oil in UP.
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