Markets

Govt will take all measures to protect investors: FMC

PTI New Delhi | Updated on March 12, 2018 Published on August 02, 2013

In the wake of suspension of some trading contracts at the NSEL, commodity markets regulator FMC today said the Government will take all measures to protect investors and that it is too early to reach a conclusion on the potential default risk of the bourse.

“The Government will take all possible action to protect the interests of investors. We are awaiting information from NSEL on the rationale behind deferring the settlement of contracts,” Forward Markets Commission (FMC) Chairman Ramesh Abhishek told PTI.

“NSEL is required to submit this information by the end of the day. Once we get that, we will analyse and send the report to the Consumer Affairs Ministry for appropriate action,” he said.

Asked if there are concerns about possible defaults at NSEL, FMC chief said, “I cannot say (about defaults) at this point of time. NSEL has informed us that it has stock worth Rs 6,200 crore and commitments of Rs 5,400 crore.”

The National Spot Exchange Ltd (NSEL) said on July 31 that it had suspended most trades on its platform and deferred settlement of contracts for 15 days. The matter has raised concerns about potential pay-out defaults by the exchange to brokers and clients.

Besides FMC, SEBI has also started a separate probe amid a crash in the shares of two listed group companies — Financial Technologies India Ltd (FTIL) and MCX — following the NSEL decision.

Published on August 02, 2013
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