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Mumbai, Jan. 20

THE commodity futures regulator, Forward Markets Commission (FMC), on Friday stated that the decision taken by NCDEX on January 19 regarding final settlement price of chana and urad was contrary to the directions issued by the commission not to change the terms of the contract during the currency of the contract without prior approval of the commission.

"The members are informed that the final settlement price of chana and urad for January 2006 contract will be determined on the basis of the average of polled prices of last five days, including the expiry date," NCDEX told its members on Thursday.

The procedure was also contrary to that adopted in the past which is known to the market, according to a release issued by commission.

The exchange was, therefore, directed that the decision be immediately withdrawn and the final settlement price be determined as per the procedure followed in past.

(This article was published in the Business Line print edition dated January 21, 2006)
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