Mumbai: Income-tax officials searched the offices of the Multi Commodity Exchange of India Ltd (MCX), the world’s third-biggest gold bourse, a week after brokers were asked to provide details of large trades.

Tuesday’s searches were “a routine process of reconciliation of accounts by the authorities,” Ravi Muthreja, a spokesman for the Mumbai-based exchange said, without giving details.

Tax officials searched branches of a commodity exchange in Ahmedabad, Bangalore, Chennai, Delhi and Kolkata, the government said in a statement, without naming the exchange.

MCX, as the exchange is known, traded contracts worth Rs1.12 trillion between 16 and 31 May, or three-quarters of the nationwide volume.

The exchange last week asked members for details of trades exceeding Rs1 lakh to meet “statutory compliance purposes,” according to its website.

MCX, in which Fidelity International Ltd holds 9% stake, accounts for more than four-fifths of gold futures traded in India.

It has partnered Euronext.liffe, the New York Board of Trade, Bursa Malaysia Derivatives Bhd. and the Shanghai Futures Exchange for sharing product knowledge.

The exchange has complied with all regulations, said deputy managing director, Joseph Massey, in an emailed statement on Tuesday.

Read full article: Live Mint

By Anupama

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