The Forward Markets Commission (FMC) has held inspections at the Ahmedabad office of the National Multi Commodity Exchange (NMCE) at least twice in the past month.

“We held inspections because they had appointed many consultants. The inspections were to find out why they cannot do the work in-house or why they cannot recruit their own staff,” said Mr B.C. Khatua, FMC Chairman.

“Yes, FMC officials had held inspections in our office,” said Mr Anil Mishra, Managing Director, NMCE.

But sources, who did not wish to be identified, said that the FMC had searched the NMCE Ahmedabad office with regard to a director of Neptune Overseas, the anchor promoter of the exchange. Neptune is allegedly trading in rubber and has licence for it from the Rubber Board.

According to sources, one of Neptune Overseas' directors, Mr Rajendrasinh Chudasama, also heads the surveillance department of the NMCE. This, according to sources, gives him access to all vital trade information such as open positions of each client and orders of clients.

When asked about this, Mr Khatua said: “We are looking into the complaints.”

Mr Mishra said: “Mr Chudasama is our employee. He does not trade in rubber.”

NMCE launched futures trading in November 2002 and currently, it is dealing in 28 commodities.

Besides Neptune Overseas Ltd, the exchange has been promoted by the National Agricultural Cooperative Marketing Federation (Nafed), Central Warehousing Corporation, Punjab National Bank, Gujarat State Agricultural Marketing Board, Gujarat Agro Industries Corp Ltd and National Institute of Agricultural Marketing.

Reliance Money and Bajaj Holdings and Investment also have significant stakes in the exchange.

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