Sebi keeping close eye on pulses, role of traders: UK Sinha

Amid soaring prices of pulses, Sebi Chairman U K Sinha today said the regulator is closely working with the government and is looking if the traders raided for hoarding have any connection with the commodity markets. Recently various state governments held raids to check hoarding and seized more than 75,000 tonnes of pulses. "We are in close contact with the government and we are watching the situation closely," Sinha told reporters here.

Noting the recent seizure of stocks of lentils in various states by the government, Sebi chairman said the regulator is also looking into the possibility that any of the traders who have violated essential commodity norms as well as control orders "are also players from the commodity markets". "If we find they are connected then perhaps there is a case for Sebi to take action," Sinha said. "So we are getting into those details and keeping a close watch on the issue," he added.

Following the merger of Forward markets Commission with Securities and Exchange Board of India (Sebi), the capital market watchdog is now also regulating the commodity markets. Sebi chairman also said that to speculate that commodity futures may lead to rise in price of pulses "is wrong". "Those who are hedging and speculating in the markets and are putting their money on the call that prices are going to fall in the near term," Sinha said.

Sinha was speaking on the sidelines of 'India ETF Conference 2015' organised by the National Stock Exchange. Dal prices have risen across the country due to a shortfall in domestic output by 2 million tonnes in 2014-15 hit by poor rains. There is also global shortage of lentils.