INSUBCONTINENT EXCLUSIVE:
MUMBAI: The Securities and Exchange Board of India (SEBI) could initiate action against top commodity brokers and their clients for
including Kotak Commodities, Anand Rathi Commodities, Reliance Commodities, Karvy Commodities and Bonanza Commodity for allegedly violating
extra positions through some of the 12 brokers and cornered the guarseed counter
notices to several clients but after they challenged its jurisdiction over them, the notices were withdrawn
Now, Sebi will initiate action against clients, sources said.
After the government merged then commodity futures market regulator Forward
Market Commission (FMC) with Sebi in September 2015, the combined regulator was given three years to clear all the pending issues at the
The investigation in the old, guar case was one such issue that had to be closed by Sebi.
In response to an ET query, an Anand Rathi
spokesperson confirmed having received the show cause notice from NCDEX
Shripal Shah could not be contacted
interest in the counter in early 2012
Such was the frenzy that guarseed spiked to Rs 28,000 per quintal (100 kilos) in March 2012 from just Rs 9,000 levels in January
That of guargum rose three times to Rs 90,000 levels over the same period.
To rein in excessive speculation, FMC increased the margin to
trade guar futures to 70 per cent and reduced client position limits by a fifth
The alleged violation of position limits happened through persons acting in concert to corner the crop after these regulatory
actions.
Trading in guar futures was suspended in March 2012 through May 2013
the Securities Appellate Tribunal (SAT).
