GOVERNMENT OF INDIA FORWARD MARKETS COMMISSION …

GOVERNMENT OF INDIA

FORWARD MARKETS COMMISSION

MINISTRY OF FINANCE

DEPARTMENT OF ECONOMIC AFFAIRS

FMC Bulletin

October 2013 – December 2013

EVEREST, 3RD FLOOR. 100, MARINE DRIVE,

MUMBAI 400 002

INDEX

Ch. No. Subject Pg. No.

1 Commodity Market Review at a Glance 2

2 Performances of the Exchanges in the Commodity Market

1.Multi Commodity Exchange of India Ltd., Mumbai 3

2. National Commodity & Derivatives Exchange Ltd., Mumbai

6

3. National Multi Commodity Exchange of India Ltd., Ahmedabad

11

4. Indian Commodity Exchange Ltd., Mumbai 14

5. ACE Derivatives & Commodity Exchange Ltd., Mumbai

17

6.Universal Commodity Exchange Ltd., Navi Mumbai 19

3. Important Developments in the Commodity Market 22

4. Developmental Activities 33

Annexure

Sr. No. Subject Pg. No.

I List of commodities notified under section 15 of the

FCRA 1952.

36

II List of Recognized Commodity Exchanges 38

III Volume and value of commodities traded 39

IV Details of permissions granted to Recognized

Exchanges

40

V Details of Capacity Building Programs conducted 44

VI State wise details of Awareness programs conducted 46

1

FOREWORD

Forward Markets Commission regulates forward trading in 113 commodities at the 17 Recognized

Commodity Exchanges, of which 6 are National Commodity Exchanges and 11 are Commodity

Specific Regional Exchanges.

During the period under review i.e., October 2013 to December 2013, food items viz. Refined Soya

Oil, Soya bean, Chana, Rapeseed/Mustard seed, Coriander and Crude Palm Oil contributed major

share to the total value of trade in Agricultural Commodities. In Non food Items, Castor seed, Cotton,

Kapas, Cotton seed Oil cake and Mentha Oil contributed major share in the commodity futures

trading. The total value of trade during the above said period was ₹16.88 lakh crore as against ₹41.99

lakh crore during the corresponding period last year. During the period, the value of trade in Bullion

was ₹6.72 lakh crore and in Metals (other than Bullion) it was ₹2.52 lakh crore. Value of trade in

Agriculture Commodities and Energy Products amounted to ₹4.07 lakh crore and ₹3.57 lakh crore

respectively. The total value of trade at the 6 National Multi Commodity Exchanges was ₹16.79 lakh

crore and at the remaining 11 Commodity Specific Exchanges, it was ₹0.09 lakh crore.

FMC has been included as member of the Financial Stability and Development Council (FSDC). As a

member of the Inter Regulatory Technical Group, constituted for implementation of key reform

measures and implementation of the non legislative recommendations of the FSLRC and to improve

the standards of consumer protection available to the clients in the Commodity Futures Market, the

Commission is taking further steps to strengthen and safeguard the interests of clients after due

consultations with all stakeholders and participants including the general public.

During the period under review, as per the deliberations of the first meeting of the re-constituted Risk

Management Group, chaired by Prof. J.R.Verma, the Commission has permitted spread margin

benefits to those having different month contracts of the same underlying commodity and to those

having two contract variants having the same underlying commodity. The Commission also held a

meeting with WDRA, the National Exchanges and Collateral Management Agencies to discuss the

various issues related to warehousing and the measures that need to be taken to strengthen the

warehousing facilities in the country. With regard to the economic disincentives for high order- to-trade

ratio and system audit of algorithmic trading, the Commission in consultation with the Advisory

Committee on Technology modified the Broad Guidelines on Algorithmic Trading.

Commission also continued with various developmental activities under the plan scheme

“Strengthening of FMC”, such as conducting awareness programmes, capacity building programmes

and the Price Dissemination Project for the benefit of all stakeholders. During the period under review,

382 awareness programmes, 46 capacity building programmes and 2 stakeholders’ meetings were

conducted.

2

1. COMMODITY MARKET REVIEW AT A GLANCE

There are 17 Commodity Exchanges (6 National and 11 Regional Exchanges) regulating futures

trading in commodities.

During the period under review (October 2013 to December 2013), the total value of trade in all

commodities traded at the recognized Exchanges was ₹16.88 lakh crore as against ₹ 24.13 lakh crore

during the previous quarter (July 2013 to September 2013) and ₹41.99 lakh crore during the

corresponding period of last year.

The six major commodity Exchanges contributed 99.47 % to the total value of trade in the Commodity

futures market. These are MCX, Mumbai (77.52 %), NCDEX, Mumbai (17.99 %), NMCE, Ahmedabad

(1.86 %), ICEX, Mumbai (0.89 %), ACE Mumbai (0.46%) and UCX, Navi Mumbai (0.76%).

The following table indicates the total volume and value of trade during the quarter October 2013 to

December 2013 in the major commodity Exchanges.

Name of Exchange Volume of Trade (In lakh tons)

Value (₹ in crore)

% share (In value terms)

Multi Commodity Exchange of India Ltd., Mumbai (MCX)

736.61 1308743.67 77.52

National Commodity & Derivatives Exchange Ltd., Mumbai (NCDEX) 690.82 303675.56 17.99

National Multi Commodity Exchange of India Ltd., Ahmedabad (NMCE)

73.65 31444.65 1.86

Indian Commodity Exchange Ltd., Mumbai (ICEX)

49.28 14931.55 0.89

ACE Derivatives & Commodity Exchange Ltd., Mumbai (ACE)

6.10 7798.07 0.46

Universal Commodity Exchange Ltd., Navi Mumbai (UCX)

34.20 12827.58 0.76

Total of National Exchanges 1590.65 1679421.09 99.47

Regional Exchanges 19.96 8868.73 0.53

Grand total 1610.62 1688289.82 100.00 Note: Natural Gas volumes are not included in the Total Volume.

It is seen from Annexure III that the major commodity groups traded in the commodity futures

market were Bullion, Agri Commodities (Food and Non-Food Items), Energy and Metals. In

Agricultural commodities the major contribution to the total value of trade was from Refined Soya Oil,

Soya bean, Castor seed, Chana and Rapeseed/Mustard seed.

The Cumulative value of commodities traded during October 2013 to December 2013 and the

value for the corresponding period last year (October 2012 to December 2012) is given below :-

(In ₹ lakh crore)

October 2013 to December 2013 July 2013 to September 2013 October 2012 to December 2012 16.88 24.13 41.99

2. PERFORMANCES OF THE

I. Multi Commodity Exchange

During the period under review Gold, Silver,

Nickel contracts constituted a major share of the value of commodities traded at MCX

Mumbai.

The following table and

MCX, Mumbai, during the period under review.

Commodities

Gold Silver Crude oil Copper Natural gas Lead Zinc Nickel Total of major commoditiesOther commodities Total

Graphical presentation showing the percentage share of above Commodities / Contracts is

given in the following Diagram:

Graphical presentation of ready and future

Crude Oil, Copper, Natural Gas, Lead, Zinc & Nickel at MCX, Mumbai during the period under

review is given below.

CRUDEOIL19.70%

COPPER8.36%

NATURAL GAS7.39%

LEAD4.76%

PERCENTAGE SHARE OF THE VALUE OF COMMODITIES TRADED AT MCX ,MUMBAI DURING OCTOBER TO DECEMBER 2013

3

PERFORMANCES OF THE EXCHANGES IN THE COMMODITY MARKET

Exchange of India Ltd., Mumbai (MCX)

During the period under review Gold, Silver, Crude Oil, Copper, Natural Gas, Lead, Zinc &

Nickel contracts constituted a major share of the value of commodities traded at MCX

and the pie chart indicate the % share of major commodities traded at

MCX, Mumbai, during the period under review.

Commodities Total value (In ₹ crore)

% share to the total value

397394.28 273727.69 257829.54 109464.99 96695.44 62309.78 31935.13 27368.67

Total of major commodities 1256725.51 52018.16

1308743.67


given in the following Diagram:

Graphical presentation of ready and futures prices of eight major commodities Gold, Silver,

Natural Gas, Lead, Zinc & Nickel at MCX, Mumbai during the period under

ZINC2.44%

NICKEL2.09%

Other Commodities

3.97%


COMMODITY MARKET

Natural Gas, Lead, Zinc &

Nickel contracts constituted a major share of the value of commodities traded at MCX,

the % share of major commodities traded at


30.36 20.92 19.70

8.36 7.39 4.76 2.44 2.09

96.03 3.97

100.00


prices of eight major commodities Gold, Silver,

Natural Gas, Lead, Zinc & Nickel at MCX, Mumbai during the period under

GOLD30.36%

SILVER20.92%


4

GOLD

SILVER

CRUDE OIL

26500

28500

30500

32500

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

10G

MS

SPOT & FUTURES PRICES OF GOLD TRADED AT MCX, MUMBAI

Ready Prices 5-Dec-13 5-Feb-14 5-Apr-14

5-Jun-14 5-Aug-14 3-Oct-14

40000

45000

50000

55000

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

KG

SPOT & FUTURES PRICES OF SILVER TRADED AT MCX, MUMBAI

Ready Prices 5-Dec-13 5-Mar-14

5-May-14 5-Jul-14 5-Sep-14

5500

6000

6500

7000

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

BB

L

SPOT & FUTURES PRICES OF CRUDE OIL TRADED AT MCX, MUMBAI

Ready Prices 21-Oct-13 19-Nov-13 18-Dec-13

20-Jan-14 19-Feb-14 19-Mar-14 21-Apr-14

19-May-14 19-Jun-14

5

COPPER

NATURAL GAS

LEAD

425

450

475

500

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

KG

SPOT & FUTURES PRICES OF COPPER TRADED AT MCX, MUMBAI

Ready Prices 29-Nov-13 28-Feb-14 30-Apr-14 30-Jun-14

205

235

265

295

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ p

er m

mB

tu

SPOT & FUTURES PRICES OF NATURAL GAS TRADED AT MCX, MUMBAI


28-Jan-14 25-Feb-14 26-Mar-14

115

125

135

145

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

KG

SPOT & FUTURES PRICES OF LEAD TRADED AT MCX, MUMBAI


31-Jan-14 28-Feb-14 31-Mar-14

6

ZINC

NICKEL

II. National Commodity and Derivatives Exchange, Ltd., Mumbai (NCDEX)

During the period under review Soy Oil, Soya Bean, Castor Seed, Chana, Dhaniya, R/M Seed, Kapas, Cotton Cake, Turmeric & Jeera constituted a major share of the value of commodities traded at NCDEX, Mumbai. The following table and the pie chart indicate the % share of major commodities traded at NCDEX, Mumbai during the period under review.

110

120

130

1405-

Oct

-13

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

KG

SPOT & FUTURES PRICES OF ZINC TRADED AT MCX, MUMBAI


31-Jan-14 28-Feb-14 31-Mar-14

800

850

900

950

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

KG

SPOT & FUTURES PRICES OF NICKEL TRADED AT MCX, MUMBAI


31-Jan-14 28-Feb-14 31-Mar-14

Commodities

Soya oil Soya bean Castor seed Chana Dhaniya Rape Mustard seed Kapas Cottonseed Oilcake Turmeric Jeera Total of major commoditiesOther commodities Total


Castor Seed, Chana, Dhaniya, R/M Seed, Kapas, Cotton Cake, Turmeric &

during the period under review is given below.

CHANA9.71%

DHANIYA8.85%

RAPE_MUSTARD_SEED5.30%

KAPAS2.88%

COTTONSEED_OILCAKE2.71%

TURMERIC

PERCENTAGE SHARE OF THE VALUE OF COMMODITIES TRADED AT NCDEX,MUMBAI DURING OCTOBER TO DECEEMBER 2013

7

Total value (In ₹ Crore)


73986.71 60950.81 54979.78 29497.12 26865.05 16098.59

8754.85 8222.35 5077.34 5017.40


303675.56

Graphical presentation of ready and futures prices of ten major commodities Soy Oil, Soya Bean,

Castor Seed, Chana, Dhaniya, R/M Seed, Kapas, Cotton Cake, Turmeric & Jeera at NCDEX, Mumbai


CASTOR_SEED18.10%

TURMERIC1.67%

JEERA1.65%

OTHER COMMODITIES

4.68%



24.36 20.07 18.10

9.71 8.85 5.30 2.88 2.71 1.67 1.65

95.32 4.68

100.00

prices of ten major commodities Soy Oil, Soya Bean,

Jeera at NCDEX, Mumbai

SOYA_OIL24.36%

SOYABEAN20.07%


8

SOY OIL

SOYA BEAN

CASTOR SEED

650

675

700

725

750

7755-

Oct

-13

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

10

KG

SPOT & FUTURES PRICES OF SOY OIL TRADED AT NCDEX

SPOT Oct-13 Nov-13 Dec-13 Jan-14Feb-14 Mar-14 Apr-14 May-14

3350

3500

3650

3800

3950

4100

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

100

KG

SPOT & FUTURES PRICES OF SOY BEEN TRADED AT NCDEX

SPOT Oct-13 Nov-13 Dec-13 Jan-14Feb-14 Mar-14 Apr-14 May-14

340036503900415044004650490051505400

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

100

KG

SPOT & FUTURES PRICES OF CASTOR SEED TRADED AT NCDEX

SPOT Oct-13 Nov-13 Jan-14Feb-14 Mar-14 Apr-14

9

CHANA

DHANIYA

R/M SEED

2800

3000

3200

34005-

Oct

-13

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

100

KG

SPOT & FUTURES PRICES OF CHANA TRADED AT NCDEX

SPOT Oct-13 Nov-13 Dec-13Jan-14 Feb-14 Apr-14 May-14

5000

6000

7000

8000

9000

10000

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

100

KG

SPOT & FUTURES PRICES OF DHANIYA TRADED AT NCDEX

SPOT Oct-13 Nov-13 Dec-13Jan-14 Feb-14 Apr-14 May-14

3250

3450

3650

3850

4050

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

100

KG

SPOT & FUTURES PRICES OF R/M SEED TRADED AT NCDEX

SPOT Oct-13 Nov-13 Dec-13

Jan-14 Apr-14 May-14 Jun-14

10

KAPAS

COTTON CAKE

TURMERIC

800

900

1000

11005-

Oct

-13

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

20

KG

SPOT & FUTURES PRICES OF KAPAS TRADED AT NCDEX

SPOT Feb-14 Mar-14 Apr-14

13001400150016001700180019002000

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3₹ P

ER

100

KG

SPOT & FUTURES PRICES OF COTTON SEED OIL CAKE TRADED AT NCDEX

SPOT Dec-13 Jan-14 Feb-14 Mar-14 Apr-14

4500

5000

5500

6000

6500

7000

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3₹ P

ER

100

KG

SPOT & FUTURES PRICES OF TURMERIC TRADED AT NCDEX


Apr-14 May-14 Jun-14 Jul-14

11

JEERA

III. National Multi Commodity Exchange, Ahmadabad ( NMCE)

During the period under review, Raw Jute, Rape/Mustard seed, Chana, Castor seed and

Sacking constituted a major share of the value of commodities traded at NMCE, Ahmadabad.

The following table and the pie-chart indicate the percentage share of major commodities

traded at NMCE, Ahmedabad during the period under review.

Commodities Total Value in ₹ crore % share to the total value

Raw Jute 5102.65 16.23

Rape/Mustard seed 4591.67 14.60 Chana 4207.83 13.38 Castor seed 4130.71 13.14 Sacking 3847.64 12.23


Others 9564.14 30.42 Total 31444.65 100.00

12000

12500

13000

135005-

Oct

-13

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

100

KG

SPOT & FUTURES PRICES OF JEERA TRADED AT NCDEX


Mar-14 Apr-14 May-14


Rape/Mustard seed, Chana

period under review is given below.

SACKING12.23%

OTHERS 30.42%

PERCENTAGE SHARE TO THE TOTAL VALUE OF COMMODITIES TRADED AT

2700.002750.002800.002850.002900.002950.003000.003050.003100.00

05-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

₹ p

er 1

00 K

g

SPOT AND FUTURE PRICES OF RAW JUTE AT NMCE., AHMEDABAD.

Spot Oct

610.00

630.00

650.00

670.00

690.00

710.00

730.00

05-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

₹ p

er 2

0 K

g

SPOT AND FUTURE PRICES OF RAPE/MUSTARD SEED AT NMCE., AHMEDABAD.

Spot

12

Graphical presentation of ready and futures prices of five major commodities

Rape/Mustard seed, Chana, Castor seed and Sacking at NMCE, Ahmadabad

period under review is given below.

RAW JUTE

RAPE/MUSTARD SEED

RAW JUTE16.23% RAPE/MUSTARD

14.60%

CHANA13.38%

CASTORSEED13.14%

PERCENTAGE SHARE TO THE TOTAL VALUE OF COMMODITIES TRADED AT NMCE., AHMEDABAD

DURING OCTOBER 2013 TO DECEMBER 2013

26-O

ct-1

3

02-N

ov-1

3

09-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

07-D

ec-1

3


Oct-13 Nov-13 Dec-13 Jan-14

19-O

ct-1

3

26-O

ct-1

3

02-N

ov-1

3

09-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

07-D

ec-1

3


Oct-13 Nov-13 Dec-13 Jan-

prices of five major commodities viz. Raw Jute,

Ahmadabad during the

RAPE/MUSTARD SEED

14.60%


14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3


Feb-14

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3


-14

13

CHANA

CASTOR SEED

SACKING

2800.002900.003000.003100.003200.003300.003400.00

05-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

02-N

ov-1

3

09-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

07-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ p

er 1

00 K

G

SPOT AND FUTURE PRICES OF CHANA AT NMCE, AHMEDABAD.

Spot Oct-13 Nov-13 Dec-13 Jan-14 Feb-14

3400.003600.003800.004000.004200.004400.004600.004800.005000.005200.00

05-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

02-N

ov-1

3

09-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

07-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ p

er 1

00 K

G

SPOT AND FUTURE PRICES OF CASTORSEED AT NMCE., AHMEDABAD.

Spot Oct-13 Dec-13 Jan-14 Feb-14

3000.003050.003100.003150.003200.003250.003300.003350.003400.00

05-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

02-N

ov-1

3

09-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

07-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ p

er 1

00 B

ags

SPOT AND FUTURE PRICES OF SACKING AT NMCE,AHMEDABAD

Spot Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14

IV. Indian Commodity Exchange

During the period under review

Gas, Lead & Crude Oil constituted a major share of the value of commodities traded at ICEX,

Mumbai.


ICEX, Mumbai during the period under review.

Commodities

Mustard seed Soybean Castor seed Iron ore 62 fines Natural gas Lead Crude oil Total of major commoditiesOther commodities Total

Note: Natural Gas volumes are not included in the Total Volume


Seed, Soya Bean, Castor Seed, Iron Ore,


CASTOR SEED19.17%

IRONORE62FINES

12.55%

NATURAL GAS7.71%

LEAD3.66%

CRUDEOIL3.37%

PERCENTAGE SHARE OF THE VALUE OF COMMODITIES TRADED AT ICEX,MUMBAI DURING OCTOBER 2013 TO DECEMBER 2013

14

Exchange , Mumbai (ICEX)

During the period under review Mustard Seed, Soya Bean, Castor Seed, Iron Ore,

constituted a major share of the value of commodities traded at ICEX,


bai during the period under review.

Total value

(In ₹ crore)

% share to the total

3830.29 3127.69 2862.92 1873.87 1151.36 546.53 502.48


14931.55

Note: Natural Gas volumes are not included in the Total Volume

Graphical presentation of ready and futures prices of seven major commodities,

Seed, Soya Bean, Castor Seed, Iron Ore, Natural Gas, Lead & Crude Oil


CASTOR SEED19.17%

CRUDEOIL3.37%

OTHER COMMODITIES

6.94%


Mustard Seed, Soya Bean, Castor Seed, Iron Ore, Natural

constituted a major share of the value of commodities traded at ICEX,



value 25.65 20.95 19.17 12.55

7.71 3.66 3.37

93.06 6.94

100.00

prices of seven major commodities, Mustard

Lead & Crude Oil at ICEX, Mumbai

MUSTARD SEED25.65%

SOYBEAN20.95%


15

MUSTARD SEED

SOYA BEAN

CASTOR SEED

3250

3500

3750

4000

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

100

Kg

SPOT & FUTURES PRICES OF R/M SEED AT ICEX,MUMBAI


20-Jan-14 18-Apr-14 20-May-14

3250

3500

3750

4000

4250

8-O

ct-1

3

13-O

ct-1

3

18-O

ct-1

3

23-O

ct-1

3

28-O

ct-1

3

2-N

ov-1

3

7-N

ov-1

3

12-N

ov-1

3

17-N

ov-1

3

22-N

ov-1

3

27-N

ov-1

3

2-D

ec-1

3

7-D

ec-1

3

12-D

ec-1

3

17-D

ec-1

3

22-D

ec-1

3

27-D

ec-1

3

₹ P

ER

100

Kg

SPOT & FUTURES PRICES OF SOYA BEAN AT ICEX,MUMBAI

Ready Prices 20-Nov-13 20-Dec-13

20-Jan-14 20-Feb-14 20-Mar-14

325035003750400042504500475050005250

8-O

ct-1

3

13-O

ct-1

3

18-O

ct-1

3

23-O

ct-1

3

28-O

ct-1

3

2-N

ov-1

3

7-N

ov-1

3

12-N

ov-1

3

17-N

ov-1

3

22-N

ov-1

3

27-N

ov-1

3

2-D

ec-1

3

7-D

ec-1

3

12-D

ec-1

3

17-D

ec-1

3

22-D

ec-1

3

27-D

ec-1

3

₹ P

ER

100

Kg

SPOT & FUTURES PRICES OF CASTOR SEED AT ICEX,MUMBAI

Ready Prices 20-Nov-13 20-Jan-14

20-Feb-14 20-Mar-14

16

IRON ORE

NATURAL GAS

LEAD

6000

7000

8000

9000

10000

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

MT

SPOT & FUTURES PRICES OF IRON TRADED AT ICEX,MUMBAI

Ready Prices 31-Oct-13 29-Nov-13

31-Dec-13 31-Jan-14 28-Feb-14

31-Mar-14 30-Apr-14 30-May-14

190210230250270290

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

1 m

mB

tu

SPOT & FUTURES PRICES OF NATURAL GAS TRADED AT ICEX,MUMBAI


26-Dec-13 28-Jan-14 25-Feb-14

110

120

130

140

150

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

Kg

SPOT & FUTURES PRICES OF LEAD TRADED AT ICEX,MUMBAI


31-Jan-14 28-Feb-14 31-Mar-14

V. ACE Commodities a nd Derivatives

During the period under review Cotton 118

share of the value of commodities traded at ACE, Mumbai.


ACE, Mumbai during the period under review.

Commodities

Cotton 118 CPO Soybean Crude oil Total of major commoditiesOther commodities Total

5600

5900

6200

6500

6800

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

₹ P

ER

BB

LSPOT & FUTURES PRICES OF CRUDE OIL TRADED AT ICEX,MUMBAI

Ready Prices

20-Jan-14

CPO24.85%

SOYBEAN9.11%

CRUDEOIL0.73%

PERCENTAGE SHARE OF THE VALUE OF COMMODITIES TRADED AT ACE, MUMBAI DURING OCTOBER 2013 TO DECEMBER 2013

17

CRUDE OIL

nd Derivatives Exchange, Mumbai (ACE)

During the period under review Cotton 118, CPO, Soya Bean & Crude Oil

share of the value of commodities traded at ACE, Mumbai.


ACE, Mumbai during the period under review.

Total value (In ₹ crore)


5000.51 1937.53 710.03 57.24


7798.07

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

SPOT & FUTURES PRICES OF CRUDE OIL TRADED AT ICEX,MUMBAI


14 19-Feb-14 19-Mar-14

COTTON118

CRUDEOIL0.73% OTHER COMMODITIES

1.19%

PERCENTAGE SHARE OF THE VALUE OF COMMODITIES TRADED AT ACE, MUMBAI DURING OCTOBER 2013 TO DECEMBER 2013

Crude Oil constituted a major



64.12 24.85

9.11 0.73

98.81 1.19

100.00

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

SPOT & FUTURES PRICES OF CRUDE OIL TRADED AT ICEX,MUMBAI

18-Dec-13

COTTON11864.12%

OTHER COMMODITIES

PERCENTAGE SHARE OF THE VALUE OF COMMODITIES TRADED AT ACE, MUMBAI

18

Graphical presentation of ready and futures prices of four major commodities, Cotton 118,

CPO, Soya Bean & Crude Oil at ACE, Mumbai during the period under review is given below.

COTTON

CPO

SOYA BEAN

38000400004200044000460004800050000

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3₹ P

ER

CA

ND

Y

SPOT & FUTURES PRICES OF COTTON TRADED AT ACE, MUMBAI

Ready Prices 18-Oct-13 20-Nov-1320-Dec-13 20-Jan-14 20-Feb-14

500525550575600

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ P

ER

10

KG

SPOT & FUTURES PRICES OF CPO TRADED AT ACE, MUMBAI

Ready Prices 31-Oct-13 30-Nov-13 31-Dec-1331-Jan-14 28-Feb-14 31-Mar-14 30-Apr-14

33003550380040504300

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3₹ P

ER

100

KG

SPOT & FUTURES PRICES OF SOYA BEAN TRADED AT ACE, MUMBAI

Ready Prices 18-Oct-13 20-Nov-13 20-Dec-1320-Jan-14 20-Feb-14 20-Mar-14 18-Apr-14

VI. Universal Commodity Exchange

During the period under review

Gold constituted a major share of the value of commodities traded at UCX, Navi Mumbai

The following table and the pie

traded at UCX, Navi Mumbai during the period under review.

Commodities

Chana Soya bean Rape/Mustard seed Turmeric Crude oil

Total of major commoditiesOthers Grand Total

55005750600062506500

27-N

ov-1

3

30-N

ov-1

3

3-D

ec-1

3

₹ P

ER

BA

RR

ELS

SPOT & FUTURES PRICES OF CRUDE OIL TRADED AT ACE, MUMBAI

Ready Prices19-Feb-

RAPE/MUSTARD SEED

23.44%

TURMERIC14.19%



19

CRUDE OIL

Exchange Ltd., Navi Mumbai (UCX)

During the period under review, Chana, Rape/Mustard seed, Soy bean, Turmeric and Kilo

major share of the value of commodities traded at UCX, Navi Mumbai

and the pie-chart indicate the percentage share of major commodities

traded at UCX, Navi Mumbai during the period under review.

Total Value in ₹ Crore % share to the total value

4128.29 3259.82 3006.71 1820.65 210.42


12827.58

3-D

ec-1

3

6-D

ec-1

3

9-D

ec-1

3

12-D

ec-1

3

15-D

ec-1

3

18-D

ec-1

3

21-D

ec-1

3


Ready Prices 18-Dec-13-14 19-Mar-14

CHANA32.18%

SOYA BEAN25.41%

CRUDE OIL1.64%

OTHERS 3.13%

PERCENTAGE SHARE TO THE TOTAL VALUE OF COMMODITIES TRADED AT UCX., NEW MUMBAI


Chana, Rape/Mustard seed, Soy bean, Turmeric and Kilo

major share of the value of commodities traded at UCX, Navi Mumbai.

the percentage share of major commodities

share to the total value

32.18 25.41 23.44 14.19

1.64

96.87 3.13 100

24-D

ec-1

3

27-D

ec-1

3


20-Jan-1421-Apr-14

CHANA32.18%


20

Graphical presentation of ready and futures prices of five major commodities viz. Chana, Soy

bean, Rape/Mustard seed, Turmeric and Crude oil at UCX, New Mumbai during the period

under review is given below.

CHANA

SOY BEAN

RAPE/MUSTARD SEED

2700.002800.002900.003000.003100.003200.003300.003400.003500.00

05-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

02-N

ov-1

3

09-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

07-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ p

er 1

0 0

Kg

SPOT AND FUTURE PRICES OF CHANA AT UCX., NEW MUMBAI

Spot Oct-13 Nov-13 Dec-13 Jan-14 Apr-14 May-14

3400.003500.003600.003700.003800.003900.004000.004100.00

05-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

02-N

ov-1

3

09-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

07-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ p

er 1

00 K

G

SPOT AND FUTURE PRICES OF SOY BEAN AT UCX., NEW MUMBAI

Spot Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14

3400.003500.003600.003700.003800.003900.004000.00

05-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

02-N

ov-1

3

09-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

07-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ p

er 1

00 K

G

SPOT AND FUTURE PRICES OF RAPE/MUSTARD SEED AT UCX., NEW MUMBAI

Spot Oct-13 Nov-13 Dec-13 Jan-14 Apr-14 May-14

21

TURMERIC

CRUDE OIL

4400.004600.004800.005000.005200.005400.005600.005800.006000.006200.006400.006600.00

5-O

ct-1

3

12-O

ct-1

3

19-O

ct-1

3

26-O

ct-1

3

2-N

ov-1

3

9-N

ov-1

3

16-N

ov-1

3

23-N

ov-1

3

30-N

ov-1

3

7-D

ec-1

3

14-D

ec-1

3

21-D

ec-1

3

28-D

ec-1

3

₹ p

er 1

00 K

G

SPOT AND FUTURE PRICES OF TURMERIC AT UCX., NEW MUMBAI

Spot Oct-13 Nov-13 Dec-13 Apr-14 May-14

5700.00

5900.00

6100.00

6300.00

6500.00

5-O

ct-1

3

12

-Oct

-13

19

-Oct

-13

26

-Oct

-13

2-N

ov-1

3

9-N

ov-1

3

16

-No

v-1

3

23

-No

v-1

3

30

-No

v-1

3

7-D

ec-

13

14

-De

c-1

3

21

-De

c-1

3

28

-De

c-1

3

₹ p

er

1 B

BL

SPOT AND FUTURE PRICES OF CRUDE OIL AT UCX., NEW MUMBAI

Spot Oct-13 Nov-13 Dec-13 Jan-14 Feb-14

22

3. IMPORTANT DEVELOPMENTS IN THE COMMODITY MARK ETS

3.1 Regulation of Commodity Exchanges:

3.1.1 Approval of Amendment to Bylaws:

• The Commission on 8th October, 2013 conveyed its approval for the amendment to Bye-law

9.8(c) of the Bye-laws of the National Commodity & Derivatives Exchange Ltd. which mainly

relates to increase in the amount of compensation payable from the Investor Protection

Fund in respect of claims against defaulter member. The amount has been increased from

the existing level of ₹ 25 lakhs to ₹ 2 crore per member as per the directives of the

Commission dated 14th May, 2013 in this regard.

• The Commission, on 14th November 2013 approved the amendments to Kapas Bye-laws

(Bye law No 78 (a)) of the Surendranagar Cotton Oil & Oilseeds Association Ltd,

Surendranagar, to permit the Exchange to trade in Hybrid-4 variety of Kapas.

• The Commission, on 4th December, 2013 has conveyed the approval for amendments to

Bye-laws No 340 & 341 of the Chamber of Commerce, Hapur with respect to the delivery

Month in Mustard Seed hedge contracts.

3.1.2 Approval of Articles of Association of the ex change:

• The Commission on 14th October 2013, directed MCX and UCX to amend the relevant

provisions of their Articles of Association so that there is no provision for permanent

Director of the company who “shall hold office” and “not liable to retire by rotation”.

• The Commission on 28th October, 2013, conveyed its approval to NMCE, Ahmedabad for

incorporating the provisions in the Articles of Association of the Exchange in terms of the

revised Guidelines dated 12th August, 2013 for constitution of Board of Directors,

Nomination and role of Independent Directors and appointment of Chief Executives at the

Nationwide Multi Commodity Exchanges in India.

• The Commission, on 13th November 2013 approved amendments to Articles of Association

of the National Board of Trade (NBOT), Indore relating to the appointment of the Executive

Director of the Exchange.

• The Commission, on 11th December, 2013 has conveyed the approval of the Commission

to the Universal Commodity Exchange Ltd, Navi Mumbai for incorporating the provisions in

the Articles of Association of the Exchange in terms of the revised Guidelines dated 12th

August, 2013 relating to constitution of Board of Directors.

• The Commission, on 17th December, 2013 has conveyed the approval of the Commission

to the National Multi-Commodity Exchange of India Ltd., Ahmedabad for incorporating

amendments to the Article No 113 for insertion of the Clause V of “Shareholder Directors” of

the Articles of Association of the Exchange in terms of the Commission’s Guidelines dated

13th September, 2013 relating to representation of all classes of Shareholders on the Board

of Directors.

23

3.2 Revision in the Regulatory Measures:

3.2.1 Approval of Contract Specification:

• The Commission has allowed Chamber of Commerce, Hapur to launch January 2014

expiry instead of February 2014 expiry in Mustard seed contract with effect from 30th

October, 2013.

• The Commission on 23rd October, 2013 gave its approval to the modification in the

delivery logic to “Sellers Option” in respect of Gold 1 KG – Domestic contracts expiring in

December 2013, February 2014, April 2014 and June 2014 as proposed by ACE Ltd.,

Mumbai.

• The Commission on 31st October, 2013 gave its approval for modifications proposed by

NCDEX in Unit of trading, Quantity variation in delivery, Change in premium/discount of

Cotton (29 mm) futures contracts expiring in the year 2014 (except lean months).

• The Commission on 13th November, 2013 gave its approval for modification in expiry

date of Crude Palm Oil futures contracts proposed by ACE Ltd. Mumbai.

• The Commission on 4th December, 2013 gave its approval to the proposal of NCDEX for

taking fresh position during the last five days of the expiry of RBD Palmolein contract,

applicable for all running contracts and the contracts yet to be launched.

• The Commission on 5th December, 2013 gave its approval to the proposal of NCDEX for

reduction of Tick Size from Rs. 10/- to Rs. 5/- in respect of Guarseed contract, applicable

for all running contracts and the contracts yet to be launched.

• The Commission on 5th December, 2013 gave its approval to the proposal of NCDEX to

enhance the radius of basis and additional delivery centres for Castor seed, Cotton seed

oil cake and Jeera up to 60 km. and to include Forti (Husk) & damaged seeds and Sand

Silica & Stones in the quality specification of Castorseed contract, applicable for the

contracts yet to be launched.

• The Commission on 17th December, 2013 gave its approval to the proposal sent by the

UCX regarding modification in Pre-expiry margin (tender margin) for Turmeric and this is

applicable to Turmeric contracts to be launched from January 2014.

• The Commission has allowed Bikaner Commodity Exchange Ltd., Bikaner to launch

February 2014 expiry instead of January 2014 expiry in Guar seed contract with effect

from 26th December, 2013.

24

3.2.2 Imposition of additional/special margin and r evision/removal of such margins :

The Commission reviewed various factors including price volatility in the futures prices of

commodities traded on National Multi Commodity Exchanges and revised Initial/ Special/

Additional Margins as per details given below.

• In view of the price volatility observed in the prices of Gold, Silver, Brent Crude Oil, Crude Oil

and Natural Gas contracts, the Commission on 29th August, 2013 had imposed additional

margin of 5% on all the said contracts. Thereafter the Commission on 3rd September, 2013

had imposed an additional margin of 5 % in all the contracts of base metals, namely

Aluminum, Copper, Lead, Nickel and Zinc traded on the National Exchanges. However, as

the price volatility has subdued, the Commission on 4th November, 2013 removed the said

additional margin of 5%. The VaR based initial margin continues to remain in force for all

these contracts.

• In view of the price trends of Guar Seed and Guar Gum contracts, the Commission on 2nd

December, 2013 removed the existing special margin of 10% on long side of all running and

yet to be launched contracts of Guar Seed and Guar Gum traded on National Exchanges,

with effect from 4th December, 2013.

3.2.3 Spread margin benefits:

In the light of recommendations made in the first meeting of the re-constituted Risk

Management Group on the issue of grant of both intra and inter- commodity spread margin

benefits in various contracts, the Commission on 26th December, 2013 directed the

Exchanges that spread margin benefits would be permitted in the following cases:-

i) Different month contracts of the same underlying commodity.

ii) Two contract variants having the same underlying commodity.

In view of the above, the Commission has directed the Exchanges as under:

i) Exchanges will charge 50% of the initial margin (inclusive of exposure & volatility

margin) on the positions in (a) different month contracts on the same underlying

commodity and (b) two contract variants having the same underlying commodity.

ii) In case of spread trades, additional and special margins shall not be levied.

iii) As far as (i) is concerned, the Exchanges are free to charge margins higher than the

minimum specified, depending upon their risk perceptions.

The above directives are made effective from 1st January, 2014 in each commodity in the

month of January 2014 and are made applicable for all running contracts from that day.

25

3.2.4 Approval for extension in trade timings/ trad ing holidays:

• The Commission on 17th October, 2013, conveyed its approval for extension in evening trade

timings of the Exchange from the existing 11: 30 pm to 11: 55 pm during the period from 4th

November 2013 to 8th March 2014(both days inclusive) in respect of the permitted

internationally referenceable commodities due to US Daylight Saving time. The Exchanges

were asked to intimate all the members about the said changes in the trading timings.

• The Commission on 16th December, 2013 approved the Common Trading Holidays for all the

National Commodity Exchanges for the calendar year 2014.

3.3 FMC included in FSDC:

FMC has been included as member of the Financial Stability and Development Council

(FSDC) vide Government of India, Ministry of Finance, Department of Economic Affairs’s

Notification dated 5th December, 2013.

3.4 FMC made a member of the Inter Regulatory Techn ical Group

FMC has also been made a member of the Inter Regulatory Technical Group, constituted by

the RBI for implementation of key reform measures and implementation of the non legislative

recommendations of the FSLRC.

3.5 FSLRC recommendations on Consumer Protection:

The Commission, keeping in view the recommendations of FSLRC and to improve the

standards of consumer protection available to the clients in the Commodity Futures Market, is

taking further steps to strengthen and safeguard the interests of clients after due

consultations with all stakeholders and participants including the general public. For this

purpose, a letter has been uploaded on the website of the Commission to invite

suggestions/comments from the public/stakeholders on the proposed additional consumer

protection measures. The comments are to be received at the Commission by 28th February,

2014. The Commission has decided to adopt the revised KYC norms by 31st March, 2014 so

as to ensure improved standards of consumer protection to the clients in the Commodity

Futures Market as per the recommendations of FSLRC.

3.6 Recommendations of the CPSS-IOSCO principle:

The Commission has decided to implement the recommendations of the CPSS-IOSCO

principle for Financial Market Infrastructures and has directed the Exchanges to carry out the

assessment with regard to the compliance with the principles.

26

3.7 Meetings held on various issues:

• Meeting of the Risk Management Group:

The first meeting of the re-constituted Risk Management Group was held on 18th November,

2013 in the office of the Commission. Prof. J.R.Verma chaired the meeting. The issues

deliberated upon during the meeting were hedge exemptions, criteria for deciding initial

margins, priority of utilization/composition and management of Settlement Guarantee Fund,

inter and intra margin spread benefits and margin funding.

• Meeting with the Warehousing Development Regulatory Authority:

Warehousing Development Regulatory Authority (WDRA) and Forward Markets Commission

held a meeting with the representatives of the National Exchanges and Collateral

Management Agencies on 22nd November, 2013 in New Delhi to discuss the various issues

related to warehousing and the measures that need to be taken to strengthen the

warehousing facilities in the country.

• Meeting of the Advisory Committee on Technology:

The 3rd Meeting of the Advisory Committee on Technology was held on 27th November, 2013

at the Forward Markets Commission, Mumbai. The meeting was chaired by Mr. Ashish

Chauhan, MD, Bombay Stock Exchange. The issues discussed were related to modifications

in the Guidelines on Algo trading and the scope of System Audit of Exchanges.

3.8 Broad Guidelines on Algorithmic Trading:

The Commission vide its letter dated 24th December, 2013 modified the Broad Guidelines on

Algorithmic Trading. The Commission had received various suggestions from market

participants and Exchanges with regard to the economic disincentives for high order- to-trade

ratio and system audit of algorithmic trading. After due examinations of the suggestions in

consultation with the Advisory Committee on Technology, the Guidelines have been revised

to the extent given below:

i) The algorithmic orders entered and/or modified within 1% of the last traded price (LTP) of

the respective contract shall not be included in the calculation of the Order-to-Trade ratio,

for the purpose of arriving at the penalty for high order- to-trade ratio. Further, the penalty

structure will be applicable for only to those members who have placed 10,000 orders or

more in a day.

ii) The limit of 20 orders per second from a particular Computer to Computer Link (CTCL)

ID/ATS User-ID shall be measured over a rolling period of 5 seconds (i.e. 100 orders for 0-

5 seconds, 100 orders for 1-6 seconds, 100 orders for 2-7 seconds & so on).

iii) System audit of algorithmic trading shall be undertaken by a system auditor empanelled by

exchanges who possess any of the following certifications:

a) CISA (Certified Information System Auditors) from ISACA;

27

b) DISA (Post Qualification Certification in Information Systems Audit) from Institute of

Chartered Accountants of India (ICAI);

c) CISM (Certified Information Securities Manager) from ISACA:

d) CISSP (Certified Information System Security Professional) from International

Information Systems Security Certification Consortium, commonly known as (ISC).

iv) The exchange may allow algorithmic trading in mini and micro contracts after taking into

account liquidity in the contract.

v) Further, the capacity of the trading system of the Exchange should be at least 4 times the

peak order load encountered and the Exchange system should be upgraded on a regular

basis.

3.9 Appointment of Independent Directors on the Boa rd of the national multi commodity

Exchanges:

The Commission conveyed its approval for the appointment of the following persons as

Independent Directors on the Board of the Exchanges in compliance with the provisions in the

revised Guidelines dated 12th August, 2013 for the constitution of Board of Directors,



a) Shri Krishna Mohan Sahni, (IAS, Retd.), Independent Director on the Board of the

Exchange, NMCE Ahmedabad as Chairperson of the Board of Directors of the Exchange

on 9th October, 2013

b) Mr. G. Ananth Raman (IRS, Retd.) and Mr. Pravir Vohra as Independent Directors on the

Board of the Exchange MCX, Mumbai on 17th October 2013. The appointment of Mr. G.

Ananth Raman (IRS, Retd.) would be valid up to 20.06.2014 and that of Mr. Pravir Vohra

would be up to 31st March, 2016.

c) Mr. Satyananda Mishra (IAS, Retd.) as Independent Director on the Board of the

Exchange MCX, Mumbai on 19th November, 2013. His appointment would be valid up to

31st March, 2016.

d) Mr. Amit Ruparelia as an Independent Director on the Board of ACE Derivatives and

Commodity Exchange Limited, Mumbai on 19th November, 2013. His appointment would

be valid up to 31st March, 2016.

e) Mr. S.N. Anantha Subramanian as Independent Director under section 6 (2) (b) of the

Forward Contracts (Regulation) Act, 1952 on the Board of the Exchange MCX, Mumbai

on 19th December, 2013 in place of Mr. R. M. Premkumar. His appointment would be for a

period up to 31st March, 2016.

28

3.10 Appointment of Shareholder Directors on the Bo ard of Exchanges:

• Exchanges were directed to reconstitute their Board of Directors by ensuring that institutional

shareholders would comprise 50% of the Shareholder Directors on the Board.

• The Commission conveyed its approval for the appointment of the following persons as

Shareholder Directors on the Board of the Exchanges in compliance with the provisions in the

revised Guidelines dated 12th August, 2013 for the constitution of Board of Directors,



a) Dr. Rakesh Gupta, General Manager, Priority Sector & Legal Bank Division, Punjab

National Bank on the Board of the Exchange NMCE, Ahmedabad, to represent Punjab

National Bank in place of Shri Rajinder Mahajan, under Shareholder Director category on

the Board of the Exchange on 28th October, 2013, as per the provision given in Clause

1.2 . This appointment is for the year 2013-14 (one term) up to the date of Annual

General Meeting.

b) Mr. K.N. Reghunathan, General Manager (Treasury), Union Bank of India, Mr. Sanjay

Agarwal, General Manager (Treasury & Investment), Bank of Baroda, Mr. M.A.K. Prabhu,

General Manager-Canara Bank and Mr. B.V. Chaubal, Deputy Managing Director and

Group Executive, State Bank of India as Shareholder Directors on the Board of MCX on

19th November, 2013. Their appointments are for the year 2013-14 (one term) or up to the

date of Annual General Meeting.

c) i) Mr. Samir Kumar Mitter, Life Insurance Corporation of India, ii) Mr. Rakesh Kapur,

Indian Farmers Fertilizer Co-operative Limited (IFFCO), iii) Mr. Narendra Murkumbi,

Shree Renuka Sugars Limited, iv) Dr. Venkatesh Tagat, National Bank for Agriculture and

Rural Development (NABARD), and v) Mr. Ravi Narain, National Stock Exchange of India

Limited, as Shareholder Directors on the Board of NCDEX, Mumbai on 2nd December

2013.

d) Mr. V.R. Gupta, Director (Finance), Central Warehousing Corporation and Mr. Kevin Pius

D’sa, President (Finance), Bajaj Holdings and Investment Limited as Shareholder

Directors on the Board of the NMCE, Ahmedabad on 2nd December 2013.

e) Mr. Miten Mehta, President, Financial Technologies (India) Limited (FTIL), and Mr. P.

Satish, Chief General Manager & Secretary – Secretary’s Department of NABARD as

Shareholder Directors on the Board of the MCX, Mumbai, on 6th December, 2013. Their

appointments are for the year 2013-14 (one term) or up to the date of Annual General

Meeting.

• The Commission, on 28th November, 2013 has conveyed the approval to MCX, Mumbai

regarding the appointment of Mr. Saytananda Mishra, (IAS Retd.) as Chairman of the Board,

29

Mr. G. Anantharaman, (IRS Retd.) as Chairman of the Audit Committee and Mr. Ravi Kamal

Bhargava, (IAS Retd.) as the Chairman of the Remuneration Committee of the Exchange.

• The Commission, on 6th December, 2013 conveyed the approval for the appointment of

Mr. Samir Shah as Managing Director and CEO of the NCDEX, Mumbai for a period of three

years with effect from the date of his appointment i.e. 20th August, 2013 and also for the

remuneration of the Managing Director and CEO.

• The Commission, on 26th December, 2013 has withdrawn the appointment of Mr. Miten

Mehta, President, Financial Technologies (India) Limited (FTIL) as Shareholder Director on

the Board of MCX, Mumbai on the ground of the Commission’s Order dated 17th December,

2013 on the “Fit and proper” status of FTIL.

3.11 Approval for the transfer of equity shares :

• The Commission on 25th October, 2013, conveyed its approval for the transfer of equity

shares of National Commodity & Derivatives Exchange Ltd. from the Jaypee Capital Services

Limited to (a) Build India Capital Advisors LLP (25,33,800 equity shares i.e. 5% of the total

shareholding of the Exchange) (b) IDFC Private Equity Fund III (Represented by IDFC

Alternatives Limited) (25,33,800 equity shares i.e. 5% of the total shareholding of the

Exchange) and (c) Oman India Joint Investment Fund (23,82,929 equity shares i.e. 4.70% of

the total shareholding of the Exchange) as per the share purchase agreements between the

parties.

• The Commission on 2nd December, 2013 has conveyed its approval for the transfer of

26,85,828 equity shares i.e. 5.30% of the total shareholding of NCDEX from the Jaypee

Capital Services Limited to Oman India Joint Investment Fund as per the share purchase

agreements between the parties.

3.12 Approval for increase in the stake in MCX:

The Commission on 16th December, 2013 approved the increase in the stake of “Blackstone

GPV Capital partners (Mauritius) VI FII Ltd.” to 4.99 % in Multi Commodity Exchange of India

Ltd. (MCX).

3.13 Orders on the Fit and Proper Status of FTIL & Others:

• As per the guidelines, the shareholders and Directors in National Exchanges must fulfill the

criterion for a “fit and proper person”. Financial Technologies (India) Limited (FTIL) is the

promoter of MCX and is also the dominant shareholder in NSEL. Mr. Jignesh Shah and Mr.

Joseph Massey were Directors in MCX and Mr. Shreekant Javalgekar was MD and CEO of

MCX. They were also Directors in NSEL. Therefore, in view of the various irregularities and

settlement default at NSEL, the status of FTIL and Mr. Jignesh Shah, Mr. Joseph Massey

and Mr. Shreekant Javalgekar as “fit and proper person” for being shareholder/Director in

MCX was examined and the Commission issued Show Cause Notices to FTIL, Mr. Jignesh

Shah, Mr. Joseph Massey and Mr. Shreekant Javalgekar on 4th October, 2013, directing them

30

to show cause as to why they should not be declared not “fit and proper” to be a

Shareholder/Director of MCX. The noticees have submitted the reply to the Show Cause

Notice on 31st October, 2013 and have requested for personal hearing. Accordingly, personal

hearing was given on 12th November, 2013 at the Office of the Commission during which the

noticees reiterated their request for cross examination of the forensic auditor M/s Grant

Thornton whose report into NSEL was also relied upon by the Commission while issuing the

Show Cause Notices. The Commission held the cross examination on 3rd December, 2013. In

this regard, on 17th December, 2013, the Commission passed a detailed speaking Order on

the fit and proper status of the Noticees, declaring them as not “fit and proper” to be

Shareholder / Director in the management and the Board of any Exchange, recognised or

registered by the Govt. of India / Forward Markets Commission, under FCRA, 1952.

3.14 Oversight Committee for MCX:

• M/s Indian Bullion Markets Association (IBMA) promoted by NSEL was trading on MCX and

Shri Shreekant Javalgekar was on the Board of IBMA and he was also MD and CEO of MCX.

The Commission asked an explanation from Shri Shreekant Javalgekar in this regard. After

examining the explanation the Commission vide letter dated 17th October 2013 directed the

Board of Directors of MCX to take appropriate action for the immediate removal of Mr.

Shreekant Javalgekar, MD and CEO of Exchange and Mr. Dipak Shah, Head of Operations,

MCX and appoint a new MD and CEO within a period of one month as per the laid-down

procedure. The Exchange was also directed to appoint an audit firm to conduct a special audit

and submit audit report to the Commission within 2 months of the appointment of the auditor.

The Commission directed the Exchange to constitute a Committee comprising of 5

Independent Directors and Institutional Shareholder Directors to provide oversight to the

management. Accordingly the Board of MCX constituted an Oversight Committee to oversee

the temporary management of MCX.

• On 6th November, 2013, the Commission communicated to MCX the items of work in the

scope of functions of the Board’s Oversight Committee in the interest of better management

and governance of the Exchange. The said committee comprised of the following members:

1. Mr. Pravir Vora, Chairman

2. Mr. G. Anantharaman, Independent Director,

3. Mr. R.K.Bhargava, Independent Director

4. Mr. P. Satish, Shareholder Director

5. Mr. K.N. Raghunathan, Shareholder Director

• On 9th December, 2013 the Commission directed the Oversight Committee for MCX to furnish

a fortnightly report to the Commission on major developments at the Exchange and action

taken by the Oversight Committee which may include issues related to trading and

settlement, surveillance, corporate governance, compliance, legal issues and any other

matter which the Committee deems significant to be brought to the notice of the Commission.

31

• On 7th November, 2013, the Commission approved the Terms of Reference for Special Audit

of MCX. On 19th November, 2013, the Commission approved the appointment of Price

Waterhouse Coopers (PwC) to conduct special audit of MCX in line with the terms of

reference as approved by the Commission.

3.15 Inspect the books of accounts of the Members

The Commission has been inspecting the books of accounts of the Members of the National

Exchanges on a regular basis. During the quarter,(i) 25 audit reports were received from the

Auditors,(ii) 22 audit reports were sent to Exchanges for follow up action on non-compliances

observed, (iii) 11 audit reports were scrutinized and (iv) Action were completed in 11 audit

reports.

3.16 Membership registration

The system of membership registration continued during the period. The total number of

members registered from 1st October, 2013 to 31st December, 2013 was 32. Members

declared as surrendered/ deactivated/ suspended by the Commodity Exchange(s) during the

above period are 72. The total number of registered members as on 31st December, 2013

stands at 5514.

3.17 Attending to Client Complaints/Grievances

The Commission receives complaints from the clients of the members registered with

recognized exchanges. The complaints are mostly of the nature of unauthorized trades (trade

without consent of the client) in client’s account by member, contract notes/account

statements not issued by the member to the client, mis-utilization of client’s funds entrusted

with the member, portfolio management services offered by the member etc. The complaints

are taken up with respective exchanges for speedy disposal of the complaints. During

October to December, 2013, fifty one (51) complaints were received and sixteen (16)

complaints were closed in which action was complete.

During October to December 2013, two circulars were issued on the subject:

(i) Central KYC Registry and Directions on prevention of Money Laundering (Maintenance of

Records) Rules 2013.

(ii) Seeking Comments on Proposal to Implement FSLRC’s recommendations on consumer

protection.

The contents of the circular in brief are as follows:

a) Circular (i) above dated 18th December, 2013 for disseminating the modalities of Central

KYC Registry to Commodity Market Intermediaries and modifying the existing guidelines on

Prevention of Money Laundering Act in the light of prevention of Money Laundering

(Maintenance of Records) Rules 2013.

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b) Circular (ii) above dated 31st December, 2013 to review the existing guidelines on investor

protection in the light of FSLRC recommendations on consumer protection and to enhance

the standards of investor protection available to the clients in commodity futures market.

4. ENFORCEMENT ACTION:

As per Rule 13 of the FC(R) Rules 1954, the Commission is required to communicate

information in respect of the commission of any offence under the Act to the concerned

authorities. During the period, complaints forwarded under Rule 13 of FC(R) Rules 1954, are

given below:

Sl. No. No. of complaints forwarded under Rule 13 of the FC(R) Rules 1954

State Police Authorities

1 1 The Superintendent of Police, Satna District, Satna (01.10.2013)

2 1 The Superintendent of Police, Indore District (HQ),Indore (28.10.2013)

3 1 The Commissioner of Police, Vasanth Nagar, Bengaluru (05.12.2013)

4 1 The Director General of Police Punjab, Punjab Police Head Quarters, Chandigarh.(10.12.2013)

5 1 The Senior Superintendent of Police, Mansa, Punjab.(13.12.2013)

6 1 The Commissioner of Police, Vadodara City, Gujarat.(12.12.2013)

5. COURT CASES AND LEGAL MATTERS:

While discharging the regulatory functions, especially enforcement functions, the Commission

has been engaged in litigation with different parties/entities. The Commission and / or the

Union of India has been impleaded as respondent(s) in various court cases filed in the

Supreme Court of India and various High Courts / Tribunals. Significant / noteworthy

developments in court cases during the month of October to December, 2013 are given

below:

• The Hon’ble High Court of Bombay passed two interim orders in Writ Petition (L) No. 2340 of

2013 filed by Tarun Amarchand Jain HUF & Another Vs. FMC and others, along with 4

connected cases, viz., PIL/89/2013, PIL/98/2013, WP/2534/2013 and WP/2505/2013

pertaining NSEL matters wherein, the exclusion of E-series contracts from the settlement plan

offered by NSEL has been contested by the petitioners. In the interim order dated 7th

October, 2013, the Hon’ble High Court kept the re-materialization / financial settlement of E-

series contracts in abeyance till 25th October, 2013 and directed FMC to permit the petitioners

for inspection of such particulars and other documents in respect of NSEL & IBMA as the

FMC and/or EOW may consider being relevant. In the second order dated 28th October,

2013, the Hon’ble High Court, while directing FMC to get the E-series contracts & related

transactions inspected by a forensic auditor, has ordered the re-materialization / financial

33

settlement of E-series to be kept in abeyance till the end of 4 weeks from the date of

furnishing a copy of forensic report to the petitioner’s advocates by FMC. The Commission

has accordingly appointed M/s. Choksey & Choksey for forensic audit of E-series contracts in

NSEL.

• The NSEL filed a Notice of Motion (L) No. 586 of 2013 in the Writ Petition (L) No. 2340 of

2013, Tarun Amarchand Jain HUF & Another Vs. FMC and others, praying for appointment of

a designated authority / commissioner / committee with the powers, inter alia, to monitor and

ensure that the defaulting members comply with the terms of their respective agreements and

to implement the terms of such agreements including powers to sell the collaterals and

recover the money from the concerned defaulting members in the event of default in

payments, etc. The next date of hearing in the matter is not yet notified.

• M/s. Bullberg Commodities Pvt. Ltd filed a Writ Petition (C) No. 7179 of 2013 against FMC,

before the High Court of Delhi, seeking directions for appointing M/s. Grant Thornton, forensic

auditors to investigate into affairs of MCX in relation to transactions of Petitioners & Check

unfair affair conduct of MCX.

• M/s. Kalimirch Vypari Association filed a Writ Petition (L) No. 2826 of 2013 against NCDEX

and others, before the Hon’ble High Court of Bombay, in the matter of delivery of Black

Pepper and its quality specifications.

• M/s. Financial Technologies (India) Limited, Shri Jignesh Shah and Shri Shreekant

Javalgekar filed Writ Petitions (L) No. 3330 of 2013, 3412 of 2013 and 3413 of 2013,

respectively, before the High Court of Bombay, challenging the order dated 17-12-2013

passed by the Commission in the matter of their status of ‘Fit and Proper’ Person. The

petitions were listed 3 times in December 2013 with other petitions in NSEL matters, however,

no interim relief has been granted so far to the petitioners’ in the matter.

6. DEVELOPMENTAL ACTIVITIES

The Forward Markets Commission, in addition to regulating the commodity futures market,

also took the following proactive steps to ensure that the commodity futures markets are

broad based and its benefits reach all the stakeholders of the Commodity Markets.

6.1 Awareness Programmes:

The Forward Markets Commission conducts awareness programmes for all the stakeholders

of the commodity derivative market, such as members of commodity exchanges and their

clients, prospective participants in the commodity derivative market, physical market

stakeholders in the agricultural, metals, bullion and energy sectors, especially farmers; grass-

root level functionaries and extension service providers in the agriculture sector, educational

institutes, etc. During the period under review, 382 awareness programmes were conducted

across the country. Out of 382 awareness programmes, 270 programmes were conducted for

farmers and 112 for other stakeholders. The details of awareness programmes organized

during the period under review is given in Annexure VI .

34

6.2 Stakeholders Meeting:

• A Stakeholders Meeting for the members of the National Commodity Exchanges belonging to

the North Zone was held at New Delhi on 19th October, 2013.

• A stakeholders’ meeting was organized by the Commission on 8th November, 2013 in

Kolkata for the members of the National Exchanges in the East Zone.

6.3 Participation in Exhibitions/Expos:

• The Commission in association with National Exchanges participated in AGROVISION 2013

held in Nagpur from 26th to 29th December, 2013.

6.4 Capacity Building Programme:

The Forward Markets Commission also organizes Capacity Building programmes for market

stakeholders, officers of the Central and State Governments engaged in policy making,

educational institutions with focus on agricultural universities, management institutes, financial

institutions, banks, the cooperatives and warehousing sectors to sensitize them about the

roles to be played by them for the development of the commodity futures market. During

October – December 2013, the Commission conducted 46 Capacity Building Programmes

which are given in Annexure V.

7. DEVELOPMENT AT NATIONAL SPOT EXCHANGE LIMITED:

• The Commission vide letter dated 3rd October 2013 directed formation of a committee to

oversee the auction/ disposal of commodities/assets at NSEL in order to bring greater

transparency and credibility to the bidding process.

• Meetings were held at the office of the Commission on 14th October, 2013 and 17th October,

2013 in view of the ad-interim order dated 7th October 2013 of the Hon’ble High Court of

Bombay in WP 2340 and WP 2534 of 2013 in which petitioners and their representatives,

NSEL, EOW and FMC participated.

• A letter was issued to the President, Institute of Chartered Accountants of India (ICAI) on 30th

October 2013 seeking a panel of competent CAs to conduct a forensic audit of NSEL e-series

transactions vide orders of the Hon’ble High Court of Bombay dated 28th October 2013 in WP

2340 and WP 2534 of 2013. Thereafter, the Commission has appointed a forensic auditor to

conduct forensic audit of the E-Series Contracts at NSEL.

• Indian Bullion Markets Association (IBMA) is one of the Institutional Trading cum Clearing

Members of NSEL through whom about 89 trading members & 19 clients have traded on

NSEL and they have to receive about Rs 1170 crores from NSEL through IBMA being their

clearing member. NSEL was making weekly payout to various members including IBMA with

the prior approval of FMC. The money received by IBMA from the NSEL’s settlement Escrow

A/c was distributed to its member and clients. But since mid-November, the settlement

account of IBMA was frozen by the Assistant Excise and Taxation Commissioner cum

Designated Officer, Ludhiana. In the meantime IBMA had requested NSEL to make direct

35

payout to its members and clients and had undertaken and declared that all obligations of

IBMA towards its members, clients and relevant authorities shall continue to be in force

notwithstanding this arrangement and this arrangement will not in any way absolve IBMA of

its responsibilities. In view of this, the Commission directed NSEL on 31st December, 2013 to

make direct payout to the members/clients of IBMA from NSEL escrow account.

• The Commission vide letter dated 16th December, 2013 directed NSEL to distribute Rs.11

Crores received as pay-in from M/s. Mohan India Pvt. Ltd. towards their settlement obligation

to the seller members. The above direction was issued subject to the condition that

permission to disburse the amount received from M/s Mohan India should not in any way be

construed as an approval of the settlement agreement entered into between M/s. Mohan India

Pvt. Ltd and NSEL.

• NSEL disbursed part payments on weekly basis to its concerned members i.e., ₹ 7.30 crore

on 5th October, 2013, ₹ 2.85 crore on 8th October, 2013, ₹ 28.34 crore on 15th October, 2013,

₹ 0.30 crore on 22nd October, 2013, ₹ 29.05 crore on 29th October, 2013, ₹ 6.10 on 19th

November, 2013 crore, ₹ 9.00 crore on 26th November, 2013, ₹ 9 Crore on 3rd December,

2013, ₹ 9 Crore, on 10th December, 2013 of ₹ 11.5 Crore, on 17th December, 2013, money

received from Mohan India (Special payout) of ₹ 11 Crore, on 20th December, 2013 of ₹

12.64 Crore on 24th December, 2013, of ₹ 20.40 Crore. on 31st December, 2013 The

proportionate disbursement towards IBMA for an amount of ₹ 10.07 Crores retained in the

NSEL escrow account against 15th, 16th, 17th, 18th, 19th settlement payouts and special payout

(Mohan India) was disbursed directly to IBMAs members and clients.

• The forensic auditors appointed to conduct a forensic audit of E-Series Contracts at NSEL,

M/s Chokshi and Chokshi, had requested for extension of time to submit their report. The

Commission has vide letter dated 30th December, 2013 granted extension of time up to 17th

January, 2014 to complete the work of forensic audit of E-Series Contracts at NSEL.

36

Annexure I

List of Commodities Notified Under Section 15 of th e F.C. (R) Act 1952.

Sr. No. Commodity

Sr. No. Commodity

(I) Food Grains and Pulses II Oilseeds and Oils

1 Arhar Chuni 30 Cottonseed Oil

2 Bajra 31 Cottonseed Oilcake

3 Barley 32 CPO Refined

4 Gram 33 Crude Palm Oil

5 Gram Dal 34 Crude Palm Olive

6 Guar 35 Groundnut

7 Jowar 36 Groundnut Oil

8 Kulthi 37 Groundnut Oilcake

9 Lakh (Khesari) 38 Linseed

10 Maize 39 Linseed oil

11 Masur 40 Linseed Oilcake

12 Moth 41 Rapeseed Oil/Mustard Oil

13 Mung 42 Rapeseed Oilcake/

Mustardseed Oilcake

14 Mung Chuni 43 Rapeseed/Mustard seed

15 Mung Dal 44 RBD Palmolein

16 Peas 45 Rice Bran

17 Ragi 46 Rice Bran Oil

18 Rice or Paddy 47 Rice Bran Oilcake

19 Small Millets (Kodan Kulti,

Kodra, Korra, Vargu, Sawan,

Rala, Kakun, Samai, Vari &

Banti)

48 Safflower

20 Tur Dal (Arhar Dal) 49 Safflower Oil

21 Tur(Arhar) 50 Safflower Oilcake

22 Urad (Mash) 51 Sesame (Til or Jiljilli)

23 Urad dal 52 Sesame Oil

24 Wheat 53 Sesame Oilcake

(II) Oilseeds and Oils

54 Soy meal

25 Celery seed 55 Soy Oil ,

26 Copra Oil/Coconut Oil 56 Soybean

27 Copra Oilcake / Coconut

Oilcake

57 Sunflower Oil

28 Copra/ Coconut 58 Sunflower Oil cake

29 Copra oil cake/Coconut Oil 59 Sunflower Seed

37

Sr. No. Commodity

Sr. No. Commodity

III Spices (VI) Others

60 Aniseed 88 Camphor

61 Betel nuts 89 Castor seed

62 Cardamom 90 Chara or Berseem (including

chara seed or berseem seed)

63 Chillies 91 Crude Oil

64 Cinnamon 92 Gram Husk (Gram Chilka)

65 Cloves 93 Gur

66 Coriander seed 94 Khandsari Sugar

67 Ginger 95 Polymer

68 Methi 96 Potato

69 Nutmegs 97 Rubber

70 Pepper 98 Seedlac

71 Turmeric 99 Shellac

IV Metals 100 Sugar

72 Copper 101 Furnace Oil

73 Zinc 102 Ethanol

74 Lead 103 Cooking Coal

75 Tin 104 Electricity

76 Gold 105 Natural Gas

77 Silver 106 Onion

78 Silver Coins 107 Carbon Credit

(V) Fibres and Manufactures 108 Thermal coal

79 Art Silk Yarn 109 Methanol

80 Cotton Cloth 110 Melted Menthol Flakes

81 Cotton pods 111 Mentha Oil

82 Cotton Yarn 112 Menthol Crystals

83 Indian Cotton (Full pressed,

half pressed or loose)

113 Iron Ore

84 Jute goods (Hessian and

Sackings and cloth and /or

bags, twines and/or yarns

manufactured by any of the

mills and/or any other

manufacturers of whatever

nature made from jute)

85 Kapas

86 Raw Jute Including Mesta

87 Staple Fibre Yarn

38

Annexure II

List of the Exchanges

Sr. No. Name of the Exchange s

A. National Multi Commodity Exchange s

1 Multi Commodity Exchange of India Ltd., Mumbai (MCX)

2 National Commodity & Derivatives Exchange Ltd., Mumbai (NCDEX)

3 ACE Derivatives and Commodity Exchange, Mumbai. (ACE)

4 National Multi Commodity Exchange of India Ltd., Ahmedabad (NMCE)

5 Indian Commodity Exchange Ltd., Mumbai (ICEX)

6 Universal Commodity Exchange Ltd, Navi Mumbai (UCX)

B. Commodity Specific Regional Exchange s

7 Bikaner Commodity Exchange Ltd, Bikaner

8 Bombay Commodity Exchange Ltd, Mumbai

9 Cotton Association of India, Mumbai

10 The Chamber of Commerce, Hapur

11 First Commodity Exchange of India Ltd, Kochi

12 India Pepper & Spice Trade Association, Kochi

13 National Board of Trade, Indore

14 Rajkot Commodity Exchange Ltd., Rajkot

15 Spices & Oilseeds Exchange Ltd, Sangli

16 Surendranagar Cotton Oil & Oilseeds Association Ltd, Surendranagar

17 Vijai Beopar Chamber Ltd., Muzaffarnagar

39

Annexure III

Volume & Value of Trading in Various Commodities du ring the period Oct’ 2013 to Dec’ 2013

Sl. No Name of the Commodity Volume (In LT)

Value (In ₹crore)

I Agricultural Commodities Food Items

1 Chana/Gram 122.42 37833.25 2 Refined Soya oil 104.03 74041.96 3 Pepper 0.03 148.86 4 Jeera (Cumin seed) 3.93 5017.40 5 Red Chilli 2.93 1964.02 6 Soya bean/seed 179.78 68048.36 7 Rape/Mustard Seed 80.62 29484.89 8 Wheat 1.01 164.16 9 Potato 8.07 375.47

10 Turmeric 13.09 6897.99 11 Sugar 6.20 1761.73 12 Gur 4.90 1292.85 13 Cardamom 0.29 2100.34 14 Maize Feed 6.00 757.00 15 Barly 2.70 361.95 16 Coffee Rep Bulk 3.01 3311.38 17 Coriander/Dhaniya 35.94 26865.05 18 Crude Palm Oil 19.57 10847.68 19 Copra 2.27 1736.88 20 Coconut oil 0.003 3.27 (A) Total of Above 596.80 273014.48

Non Food Items 21 Guar seed 9.70 4857.11 22 Mentha Oil 0.84 7211.04 23 Castor seed 147.45 63221.07 24 Guar Gum 1.77 2434.48 25 Kapas 30.15 14544.08 26 Rubber 1.00 1617.06 27 Raw jute 17.80 5102.65 28 Cotton seed Oilcake / Kapasia Khali 55.99 8273.04 29 Sacking 7.71 3847.64 30 Isabgul Seed 3.86 2616.08 31 Cotton 14.02 20674.35 (B) Total of Above 290.29 134398.61

(A+ B) Total Agri-Commodities 887.09 407413.08 II Bullion 1 Gold 0.01 398143.42 2 Silver 0.59 273989.79 Total of Bullion 0.60 672133.21

III Metals 140.13 251608.67 IV Energy (excluding Natural gas volume ) 582.79 357134.85

Grant Total (I to IV) (excluding Natural gas volume ) 1610.62 1688289.82

40

Annexure IV

Details of permissions granted to the Recognized Ex changes :

Sl. No.

Name of the Exchange

Commodities permitted

Contracts permitted Date of permission

1 ACE, Mumbai

Gold (1kg)Domestic

December 2013, February 2014, April 2014, June 2014

4th October, 2013

2 Silver (30kg) domestic

December 2013, March 2014, May 2014, July 2014

4th October, 2013

3 Copper November 2013, February 2014 April 2014, June 2014

4th October, 2013

4 Crude oil

19th November 2013, 18th December 2013, 20th January 2014, 19th February 2014, 19th March 2014, 21st April 2014

4th October, 2013

5 Crude Palm Oil

January 2014, February 2014, March 2014, April 2014, May 2014, June 2014, July 2014, August 2014, September 2014, October 2014, November 2014, December 2014

10th October, 2013

6 Cotton 118 April 2014, May 2014, June 2014,July 2014

1stNovember, 2013

7 NCDEX, Mumbai

Cotton (29 mm)

January 2014, February 2014, March 2014, April 2014,October 2014, November 2014 and December 2014

31st December, 2013

8 Jeera January 2014

31st December, 2013

9 Coriander February 2014

31st December, 2013

10 Crude Palm Oil

December 2013, January 2014, February 2014, March 2014, April 2014, May 2014, June 2014, July 2014, August 2014, September 2014, October 2014, November 2014 and December 2014

14th November, 2013

11 Cotton seed (Industrial Grade-A & B)

A Grade:- January 2014, November 2014, December 2014, B Grade:- February 2014, March 2014, April 2014, May 2014, June 2014

23rd December, 2013

12 Gold (1kg) January 2014, March 2014,May 2014, July 2014,September 2014,November 2014

26th December, 2013

13 MCX, Mumbai

Aluminium January 2014 to December 2014

7th October, 2013

14 Aluminium Mini

January 2014 to December 2014 7th October, 2013

15 Brent Crude Oil


16 Crude Palm Oil


17 Gold Guinea January 2014 to December 2014

7th October, 2013

18 Gold Mini January 2014 to December 2014

7th October, 2013

19 Gold Petal (Delhi)


20 Lead January 2014 to December 2014

7th October, 2013

21 Lead Mini January 2014 to December 2014

7th October, 2013

41

Sl. No.




22 Mentha Oil January 2014 to December 2014

7th October, 2013

23 Natural Gas January 2014 to December 2014

7th October, 2013

24 Nickel January 2014 to December 2014

7th October, 2013

25 Nickel Mini January 2014 to December 2014

7th October, 2013

26 Zinc January 2014 to December 2014

7th October, 2013

27 Zinc Mini January 2014 to December 2014

7th October, 2013

28 Copper June 2014, August 2014 and November 2014

7th October, 2013

29 Copper Mini June 2014, August 2014 and November 2014

7th October, 2013

30 Gold October 2014 and December 2014

7th October, 2013

31 Silver September 2014 and December 2014

7th October, 2013

32 Silver Mini August and November 2014

7th October, 2013

33 Silver Micro June 2014, August 2014 and November 2014

7th October, 2013

34 Cotton July 2014, October 2014, November 2014 and December 2014

7th October, 2013

35 Crude oil July 2014 to December 2014

7th October, 2013

36 Mild Steel Ingots/Billets (BIS 2830)


37 UCX, Mumbai

Gold Kilo January 2014, March 2014, May 2014, July 2014, September 2014 and November 2014

7th October, 2013

38 Gold Nano January 2014 to December 2014

7th October, 2013

39 Silver 30 kg. February 2014, April 2014, June 2014, August 2014 and November 2014

7th October, 2013

40 Silver Nano January 2014 to December 2014

7th October, 2013

41 Crude oil January 2014 to December 2014

7th October, 2013

42 Chana January 2014, April 2014, May 2014, June 2014, July 2014, August 2014, September 2014, October 2014, November 2014 and December 2014

7th October, 2013

43 Mustard seed

January 2014, April 2014, May 2014, June 2014, July 2014, August 2014, September 2014, October 2014, November 2014 and December 2014

7th October, 2013

44 Refined Soy Oil


45 Soya bean January 2014, February 2014, March 2014, April 2014, May 2014, June 2014, July 2014, October 2014, November 2014 and December 2014

7th October, 2013

42

Sl. No.




46 RubberRSS4 January 2014 to December 2014 7th October, 2013 47 Turmeric April 2014 to December 2014

7th October, 2013

48 Copper February 2014, April 2014, June 2014, August 2014, November 2014

18th November, 2013

49 Lead December 2013, January 2014, February 2014, March 2014, April 2014, May 2014, June 2014, July 2014, August 2014, September 2014, October 2014, November 2014 and December 2014

18th November, 2013

50 Nickel December 2013, January 2014, February 2014, March 2014, April 2014, May 2014, June 2014, July 2014, August 2014, September 2014, October 2014, November 2014 and December 2014

18th November, 2013

51 Zinc December 2013, January 2014, February 2014, March 2014, April 2014, May 2014, June 2014, July 2014,August 2014, September 2014, October 2014, November 2014 and December 2014

18th November, 2013

52 Natural Gas December 2013, January 2014, February 2014, March 2014, April 2014, May 2014, June 2014, July 2014,August 2014, September 2014, October 2014, November 2014 and December 2014

18th November, 2013

53 Guar seed January 2014, February 2014, March 2014, April 2014, May 2014, June 2014, July 2014, October 2014, November 2014, December 2014

16th December, 2013

54 Guar Gum January 2014, February 2014, March 2014, April 2014, May 2014, June 2014, July 2014, October 2014, November 2014, December 2014

16th December, 2013

55 ICEX, Mumbai

Soybean October 2013, November 2013, December 2013, January 2014, February 2014, March 2014, April 2014, May 2014, June 2014, July 2014, October 2014, November 2014 and December 2014

7th October, 2013

56 Castor seed October 2013November 2013, January 2014, February 2014, March 2014, April 2014, May 2014, June 2014, July 2014, August 2014, September 2014, October 2014 and November 2014

7th October, 2013

57 Copper Cathode,

February 2014,April 2014,June 2014, August 2014,November 2014

10th October, 2013

58 Gold February 2014,April 2014,June 2014, August 2014,October 2014,December 2014

10th October, 2013

59 Silver March 2014,May 2014,July 2014, September 2014,December 2014

10th October, 2013

60 Silver 5 kg March 2014, May 2014,July 2014, September 2014,December 2014

10th October, 2013

61 Crude Oil January 2014, February 2014, March 2014, April 2014,May 2014,June 2014, July 2014,August 2014,September 2014,October 2014,November 2014, December 2014

10th October, 2013

43

Sl. No.




62 Gold 100 gms

January 2014,February 2014,March 2014,April 2014,May 2014,June 2014, July 2014,August 2014,September 2014,October 2014,November 2014, December 2014

10th October, 2013

63 Lead January 2014,February 2014,March 2014,April 2014,May 2014,June 2014, July 2014,August 2014,September 2014,October 2014,November 2014, December 2014

10th October, 2013

64 Natural Gas January 2014,February 2014,March 2014,April 2014,May 2014,June 2014, July 2014,August 2014,September 2014,October 2014,November 2014, December 2014

10th October, 2013

65 Iron Ore 62 fine


10th October, 2013

66 Refined Soy Oil


10th October, 2013

67 Mustards seed

January 2014,April 2014,May 2014, June 2014,July n2014,August 2014, September 2014,October 2014, November 2014,December 2014

10th October, 2013

68 NMCE, Ahmedabad

Cardamom November 2013, December 2013, January 2014,February 2014,March 2014,April 2014,May 2014 and June 2014

28th October, 2013

69 IPSTA, Kochi Pepper MG 1 January 2014, February 2014, March 2014, April 2014, May 2014 and June 2014

8th October, 2013

70 RCEL, Rajkot Castor seed March 2014, June 2014, September 2014 and December 2014

21st October, 2013

71 COC, Hapur

Mustardseed January 2014

30th October, 2013

72 FCEI, Kochi Copra April 2014, May 2014, June 2014, July 2014

12th December, 2013

73 Coconut oil April 2014, May 2014, June 2014, July 2014

12th December, 2013

74 COC, Hapur Mustardseed April 2014, July 2014, October 2014, January 2015

26th December, 2013

75 BCEL, Bikaner

Guar seed February 2014

26th December, 2013

44

Annexure V

Details of capacity building programmes conducted i n October 2013 to December 2013

S. No.

Name of the Institute/Agriculture

University

Dates of the programme conducted

Venue of the programme Conducted

Category of participants

1 NABCONS, Mumbai

21-22nd October, 2013

Punjab Sr. officers of Public Sector Banks including Regional Rural banks & State cooperative Banks

2 ICM, Jaipur 17-18th October, 2013

Jaipur, Rajasthan Chairman/ Directors of Primary Sales & Purchase Committees

3 ICM, Guwahati (NER)

28-30th October, 2013

Shillong, Meghalaya (NER)

Secretaries/BODs of Agri. Marketing Coop.

4 ICM, Bhopal 24-25th October, 2013

Ujjain, M.P. BODs of Primary Marketing Coop. Soc. of M.P. & Chattisgarh

5 NSRICM, Kalyani (NER)


Sikkim, Meghalaya (NER)

Govt. of officials of Agri. Dept. of Sikkim & officials of Coop. Directorate of Sikkim

6 ICM, Hyderabad 29-31st October, 2013

Hyderabad, A.P. Officers of Dept. /Manager /Secretarial Staff & BODs of coop. in A.P.

7 TNAU, Coimbatore 10-11th October, 2013

Horticultural Research Station, Kodikanal

Students & faculty members of the Univ. , Scientists from KVK’s & Agri. Research stations and agricultural Extension officials

8 Pondicherry University


Pondicherry, U.T. Com., economics, management and agricultural sciences faculty from Indian Universities and college & research scholars in Pondicherry

9 RICM, Gandhinagar 24-25th October, 2013

Gandhinagar, Gujarat

Officers, Secretary/ Assistant Secretary of APMC & PACS of Gujarat State

10 Prog.for Corporate - CEO’s & CFOs by NCDEX

21st October, 2013

New Delhi CEO’s /CFO’s on hedging & commodity trade.

11 NABCONS, Mumbai 3-4th October, 2013

Jharkhand Sr. officers from State and Central Govt. Depts.

12 NIAM, Jaipur 30-31st October, 2013

Jharkhand, Ranchi

Cooperative Banks

13 Orientation prog. for Sr. officers of Min.of Finance, New Delhi by FMC, Mumbai

31st October, 2013

Mumbai, Hotel Marine Plaza

Orientation prog. for Sr. officers of Min. of Finance, New Delhi

14 NABCONS, Mumbai

3-4th October, 2013

Shimala Himachal Pradesh

For senior officers of Govt. of India Dept./Agri. Univ.

15 NIAM, Jaipur 14-15th November, 2013

Shimala, Himachal Pradesh

Chairman & elected members of APMCs

16 NIAM, Jaipur (NER)

15-16th November, 2013

Nagaland Dimapur(NER)


17 TOPIC, Gurgaon 21-22nd November, 2013

Ranchi, Jharkhand

Senior Managers & officers of various State commodity & marketing cooperative federations

18 ICM, Jaipur 28-29th November, 2013

Jaipur, Rajasthan Students of Indian Rural Management Institutes

19 ICM, Guwahati (NER)


Nahariagun,Arunchal Pradesh (NER)

Secretaries/BODs of Agri. Marketing Cooperatives

20 NSRICM, Kalyani (NER)


Agartala, Tripura, (NER)

For the officers of Cooperation Department of Govt. of Tripura

21 Birsa Agricultural University, Ranchi

22-23rd November, 2013

Ranchi, Jharkhand

Scientists, KVK scientists, students and Dept. officials and bankers

22 TNAU, Coimbatore 11-12th November, 2013

Krishi Vigyan Kendra, Ramanathapuram

Students & faculty members of the Univ. , Scientists from KVK’s & Agri. Research stations and agricultural Extension officials

45

S. No.

Name of the Institute/Agriculture

University

Dates of the programme conducted

Venue of the programme Conducted

Category of participants

23 MANAGE, Hyderabad


Shillong Meghalaya

Faculty of Agri. Eco. Dept. of State Agri. Univ. Scientists of KVK’s under ICAR, Senior officers of Dept. of Agri. & other line Dept. of various States

24 IIPM, Bangalore 28-29th November, 2013

Bangalore For faculties & research scholars at Univ. & Mgnt. Institutes across the country (dept. of com/ Mgnt/ eco/fin/prod/agri)

25 NABCONS, Mumbai


Tamil Nadu For Marketing Fed./ Societies and PACs

26 TOPIC, Gurgaon 4-5th December, 2013

TOPIC, Gurgaon Haryana

Senior officers of State Coop. Dept./ Co op Banks and Coop. Dev. Projects.

27 VAMNICOM, Pune 16-18th December, 2013

Pune, Maharashtra

Chairman, Board of Directors of DCCBs & UCBs

28 VAMNICOM, Pune 16-18th December, 2013

Pune, Maharashtra

MDs, GM & Sr. Executives of DCCBs & UCBs

29 TNAU, Coimbatore 10-11th December, 2013

Agricultural College & Research Institute,Periakulam

Students & faculty members of the Univ.

30 RICM, Gandhinagar 6-7th December, .2013


Office bearers of 16 Regional exchanges

31 ICM, Jaipur 9-10th December, 2013

Jaipur, Rajasthan Board members of PAC Committee

32 IGICM, Lucknow 9-10th December, 2013

U.P. , Lucknow Jt. Dir./Dy. Dir. of directorate of Agri. U.P.

33 NSRICM, Kalyani 10-11th December, 2013

NSRICM, Kalyani BOD & Managers of Coop. Societies in W.B.

34 NABCONS, Mumbai 4-5th December, 2013

Haryana For Bankers

35 ICM, Hyderabad 10-12th December, 2013

On location, District level, A.P.

Officers of Dept. /Manager /Secretarial Staff & BODs of coop. in A.P.

36 MANAGE, Hyderabad

10-12th December, 2013

Goa, Panaji Faculty of Agri. Eco. Dept. of State Agri. Univ. Scientists of KVK’s under ICAR, Senior officers of Dept. of Agri. & other line Dept. of various States

37 TOPIC, Gurgaon 5-6th December, 2013

Lucknow, U.P.

Senior Managers & officers of various State commodity & marketing cooperative federations

38 ICM, Bhopal 17-18th December, 2013

ICM, Bhopal. MBA students of M.P.

39 ICM, Dehradun 18-19th December, 2013

Dehradun, Uttrakhand

For Inspectors of mandi board & Group inspector of Coop. Agri. Dept. of Uttrakhand State

40 NABCONS, Mumbai


Maharashtra, Pune

For Bankers

41 NABCONS, Mumbai (NER)


Assam (NER) For senior officers of Govt. of India Dept./Agri. Univ.

42 RBVRR, Police Academy, Hyderabad

21st December, 2013

RBVRR, Police Academy, Hyderabad

For the officers of the rank of Inspector of Police to Additional Superintendent of Police.

43 DNSRICM, Patna 23-24th December, 2013

Patna, Bihar For Cooperative Dev. officers of ICDP of various Districts

44 RICM, Gandhinagar 26-27th December, 2013


Officers, Sec. Assistant Sec. of APMC & PACS of Gujarat State

45 ICM, Jaipur 26-27th December, 2013

Jaipur, Rajasthan Sr. Managers of PAC Committee

46 NIAM, Jaipur 23-24th December, 2013

Jammu, Jammu & Kashmir


46

Annexure VI

State-wise details of awareness programmes for the period from Oct’ 2013 to Dec’ 2013

Names of States October 2013 to December 2013

Farmers Others Total Andhra Pradesh 8 8 16

Arunachal Pradesh 8 4 12

Assam 4 5 9

Bihar 13 2 15

Chhattisgarh 4 3 7

Chandigarh -- -- --

Daman & Diu -- -- --

Goa 3 4 7

Gujarat 64 14 78

Haryana 11 3 14

Himachal Pradesh 2 1 3

Jharkhand 4 2 6

Jammu & Kashmir -- 2 2

Kerala 12 1 13

Karnataka 11 10 21

Maharashtra 23 5 28

Madhya Pradesh 6 5 11

Manipur 5 -- 5

Meghalaya 5 4 9

Mizoram -- -- --

Nagaland 2 -- 2

New Delhi 1 -- 1

Odisha 16 2 18

Pondicherry -- -- --

Punjab 6 5 11

Rajasthan 7 12 19

Sikkim 1 2 3

Tamil Nadu 11 8 19

Tripura 1 -- 1

Uttar Pradesh 29 6 35

Uttaranchal 9 2 11

UT of Andaman 1 -- 1

West Bengal 3 2 5

TOTAL 270 112 382

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