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The problems faced by the United Commodity Exchange have left its members worried about their investments.
“All members have to pay ₹5 lakh as base minimum capital besides margin capital of at least ₹1 lakh for trading. The exchange doesn’t have money to return these investments,” said sources.
A trader, not wishing to be identified, said that his investments of ₹15 lakh (₹5 lakh base capital and ₹10 margin money) were lying with UCX and requests for refund have not been honoured.
“All these funds are logged in the exchange and cannot be simply refunded. There is a process and it will take time,” said an UCX official on condition of anonymity. Sources said the margin money will have to be returned within a day and such UCX clarifications will not wash.
They said that even about ₹16 crore in the Settlement Guarantee Fund, which has to be mandatorily set by every commodity exchange to meet any payment crisis, has been siphoned off. UCX had launched futures trading in crude oil, chana (gram), gold, mustard, refined soya oil, rubber, silver, soyabean and turmeric.
According to the UCX official, the exchange will resume trading. He, however, refused to give a timeline for the resumption.
“We are introducing new segments and have to put that in place,” the official said.
The official declined to give a date for the resumption of trade.
Sources, however, are sceptical of any resumption of trade. “When all employees have been asked to resign, where is the question of trade resuming?” a source asked.
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