Since bourses are already collecting annual subscription charges from members, it is the responsibility of the exchanges to conduct such audits at their own cost, the commodity markets regulator said
Commodity markets regulator, Forward Markets Commission (FMC), has asked national exchanges not to charge audit fee from their members and directed them to strengthen in-house audit team.
Commodity exchanges are required to conduct audit inspections of their members (brokers) once in a year as part of the compliance regime. Currently, the exchanges are charging fee from their members to conduct their audit.
In a directive issued to the bourses, the comodity markets regulator said: "It has been brought to the FMC's attention that the quality of such audits is often not up to the mark in the absence of sufficient experience and knowledge of the commodity markets and the functioning of the commodity exchanges on the part of the auditors."
Since audit inspections are an important part of the compliance regime of the exchanges and as they are already collecting annual subscription charges from the members, it is the responsibility of the exchanges to conduct such audits at their own cost, it said.
"Therefore, it is directed that exchanges shall henceforth not charge any fee from the members for conducting their audits," FMC said.
The exchanges are also directed to develop at the earliest adequate in-house capacities to conduct all such audits so that such inspections are done in an effective and timely manner, it said.
There are six national bourses -- Multi-Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX), Ahmedabad-based NMCE, ICEX, ACE and UCX -- and 11 regional commodity exchanges in the country.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
The CAG and RBI maintain panels.
I know from experience this system delivers.
The CAG and RBI maintain panels.
I know from experience this system delivers.