Acting on the Forward Market Commission's recommendation, the Multi Commodity Exchange has listed 29 entities and individuals having links with blacklisted stock broker Ketan Parekh and has warned its members not to associate with any of them, or their directors, promoters or partners, in any form.
The exchange has called for response from its members in case there is any link with Parekh, or a voluntary declaration that they are not associated with him, by May 10.
The list put out by MCX includes Anand Poddar, Radhakrishnan, Millennium Stock Broking (P) Ltd, Triumph International Finance (India) Ltd (TIFIL), Triumph Securities Ltd, NH Securities Ltd, Classic Share and Stock Brokers Ltd, VN Parekh Securities Ltd, KNP Securities Ltd, Sanjay Khemani, and Doe Jones Investments & Consultants Pvt Ltd.
"We have asked members to check their trade links for their association with these entities and individuals. There has been no evidence of any link so far," Jignesh Shah, CEO and managing director, MCX said.
The National Commodity & Derivatives Exchange Ltd is working on a list and it and would be ready soon. "This is a regular thing," said FMC chairman S Sundareshan.
"MCX must have done their own analysis and listed out 29 names for members. So far, no such list has been issued by the FMC and no Ketan Parekh link was found in commodities trade," Anupam Mishra, director, FMC said.
"We received reports from the market that Ketan Parekh is actively involved on mentha oil trade on national exchanges and hence, we need to control them," he added.
The regulator has written to the national exchanges where volume on mentha oil is high.
Talking about penalty, Mishra said the FMC might impose penalty in step with powers conferred on it by the government, which might go up to the maximum extent of restricting companies and individuals from trade anywhere in the country.
Parekh was allegedly involved in the payment crisis in the Calcutta Stock Exchange, which was probed by a joint parliamentary committee.
He was also allegedly involved in the collapse of Madhavpura Bank. The FMC had hinted earlier that a broker debarred from securities trading cannot enter into commodities.
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