High Court Grants Stay Order in FIR Filed Against NCDEX Officials

NCDEX, the leading commodities and derivatives exchange, today announced that the Jodhpur High Court has stayed the police investigations in connection with the FIR that a group of traders had recently filed against four employees of the Exchange including its MD & CEO. During the hearing it was pointed out by the Exchange that the spot prices are disseminated as per the stringent process put in place by the Exchange and that the participants have to make their own trading decisions based on their own independent enquiries, appraisals, judgement, wisdom and risks. The Court accepted that there is no case for the offence as alleged in the impugned FIR made against the named officials.

“The Exchange prides itself on building a robust market structure whilst upholding strong values of integrity; this has earned us the long standing trust of the market participants. Our stringent norms and regulations reinforce our commitment to providing a fair and transparent price discovery platform which maintains market integrity” ,said  Samir Shah, MD & CEO, NCDEX

With Coriander (Dhaniya) prices trading higher than expected level, there were complaints of unhealthy trading activities causing market distortion.  While the divergence between futures and physical market prices has been a reality, detailed analysis by the Exchange revealed it to be a result of combined impact of inferior quality coriander produced during the current season and tightening of quality parameters by the Exchange to adhere to FSSAI norms rather than only speculative sentiments.

The Exchange follows a scientific methodology in a consistent manner for polling from an empanelled list of polling participants from across the underlying physical markets. Polled prices are then subjected to a statistical process to minimise bias. The entire polling is process-driven and there is no intervention by the Exchange. Accordingly the spot prices that are arrived at represent the prices as quoted by majority of the polling participants. Movement in spot prices is separately checked with the market participants by the Exchange officials with a view to cross-check the polled prices. These prices are subsequently disseminated by the Exchange for information purposes.

ABOUT NCDEX:

As India’s leading online exchange, NCDEX offers the widest range of benchmark products across agriculture, metals and precious metals. NCDEX brings buyers and sellers together through its electronic trading platform. It enjoys the distinction of being the only exchange in the country promoted by national level institutions. The institutional promoters and shareholders of NCDEX are prominent players in their respective fields and bring with them institutional building experience, trust, nationwide reach, technology and risk management skills.