NCDEX Rules to Curb Benami Trading in Commo Futures

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NCDEX Rules to Curb Benami Trading in Commo FuturesGold Silver Reports — NCDEX Rules to Curb Benami Trading in Commo Futures — The National Commodity and Derivatives Exchange (NCDEX) issued a financial conduct framework which is expected to contribute directly in making the futures market transparent and less vulnerable to manipulation.

The exchange guidelines clarify the definition of “persons acting in concert“ and the rules for clubbing of open positions. These guidelines will help prevent circumvention of the stipulated position limit norms by clientsmembers, the exchange said.

In addition to several enhancement measures to strengthen risk management and surveillance framework, these guidelines are also designed to curb `benami’ account trading in commodity futures markets, it added.

The exchange monitoring and surveillance system will take note of attempts which may appear to compromise market integrity and any violation will attract stringent penal action, as outlined by the regulator, will be taken on violation of position limits, it added.

The new set of principles is a defining initiative for the financial market and is backed by extensive research and consultations with market regulator Sebi, it said.  — Neal Bhai Reports

NCDEX Rules to Curb Benami Trading in Commo Futures