MUMBAI : The Forward Markets Commission has directed the National Spot Exchange to resubmit its proposal with a revised plan on repaying members and clients of its arm Indian Bullion Market Association.
Earlier, the National Spot Exchange had sought the regulator’s permission to directly pay members and clients of the Indian Bullion Market Association with the money received from the exchange’s borrowers. “Your proposal…has been examined by the Commission and it is observed that you have not mentioned the relevant authority under which such direct payout can be made…,” FMC said in a letter to the exchange.
FMC’s diktat follows National Spot’s application along with a letter from its subsidiary Indian Bullion Market Association, which is also the clearing and trading member of the spot exchange, requesting release of payout directly to its members and clients. -Cogencis
The bullion body is a member of National Spot Exchange, and entitled to receive a pro-rata share from payouts effected by the defunct spot bourse out of money received from borrowers.
There are a number of investors who had registered as members with the Indian Bullion Markets Association, but are unable to get any money from the bullion body after the excise and taxation commissioner at Ludhiana seized the bullion body’s HDFC Bank account.