Sebi lens on coriander delivery

Mumbai: Capital markets regulator Sebi is keeping a close watch on the coriander counter on NCDEX, after market rumours surfaced of an entity previously pulled up for cartelisation in pepper, operating the counter, a person aware of the development said. He said a report on coriander "submitted by NCDEX to Sebi" cites market reports about the involvement of the "same entity".

"There are market concerns of some entities trying to palm off 2-3 year old inferior variety of coriander, purchased at lower rates, through exchange accredited warehouses," the person said.

"The exchange has taken measures like re-assaying the goods being brought for deposit, stationing an independent assayer, etc, in light of the complaints and rumours and has also rejected 50% of the goods sought to be deposited. The exchange has sent a report on the action taken to Sebi."

Queried about having sent a report to Sebi in which an entity previously foul of cartelisation was referred to, an NCDEX official said, "The Exchange cannot comment on surveillance matters; these are matters dealt with between the exchange and the regulator."

The spokesperson added, "Specifically regarding quality of coriander, the Exchange has been alert on perceived quality of deposits in coriander and so far in our extremely proactive internal audits and independent external audits, we haven't found anything. In fact, our rejection rates in coriander in 2016 has been at 31%, the highest in recent years. We continue to remain alert."