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A broker member of MCX, the country’s largest commodity derivatives exchange, moved to Delhi’s high court against the way the exchange resolved the April crude oil contract.
Prrsaar Commodities (P) Ltd moved the court in the interest of its investors against MCX challenging the negative settlement price for crude oil for the exchanges that expired on April 20.
MCX, which initially announced a provisional settlement price of Re 1 for its contract ending on April 20, then calculated a price of less than Rs 2,884 per barrel, exposing brokers to a potential loss of Rs 435 million rupees.
Mukesh Goyal, defense attorney for Prrsaar Commodities, reported that a petition is likely to be filed in the matter on April 29.
Goyal has also said that the liquidation of operations in negative trajectory is an unjust enrichment of one segment at the expense of another.
Crude oil contracts on MCX reflect prices on the New York Mercantile Exchange (Nymex) and since the Indian commodity markets closed for trading at 5 p.m. Monday, local traders were unable to exit their positions, while US prices. USA They dropped to less than $ 37.63 later in the evening.
He also said that MCX is not justified in setting the settlement price at a rate after the close of the trading session.
Even MCX software does allow negative offers, he added.
The lawyer also said that SEBI, the market regulator, did not intervene.
