Chapter XIII-C Chapter XIII-C

E-Trading

spot exchange for trading in notified agricultural produce without obtaining a licence under this section.

1. (2) Subject to such conditions and such fees and security as may be prescribed, the Director of Agricultural Marketing may grant licence to setup spot exchange for providing trading facilities in the notified agricultural produce.
2. (3) Any person desires to setup a spot exchange may apply to the Director of Agricultural Marketing in such manner along with such fee and security as may be prescribed.
3. (4) The spot exchange shall,-
   • (i) have online trading and clearing system with national reach;
   • (ii) ensure efficient clearing, settlement and guarantee system;
   • (iii) ensure transparency in operations and decision making related to entire operations;
   • (iv) provide for delivery of underlying commodity backed by a warehouse receipt system;
   • (v) provide the following services:-
   • (a) electronic spot trading facility in notified agricultural produce;
   • (b) grading, quality certification and standardization of commodities;
   • (c) facilitating collateral financing and borrowing against warehouse receipts;
   • (d) customized service relating to storage, transportation, logistics, handling and shipment;
   • (e) procurement and disposal of commodities through online trading system;
   • (f) market intelligence reports.
4. (5) The spot exchange may collect fees relating to, membership, VSAT, annual subscription etc., from the members.
5. (6) Trading, delivery, clearing and settlement shall take place on such terms and conditions as may be prescribed.
6. (7) The spot exchange shall provide guarantee performance of all contracts executed on the spot exchange platform. For this purpose, it shall maintain a settlement guarantee fund. Notwithstanding any default of any member, spot exchange licensee shall be responsible for collection and payment price to sellers, the payment has to be made as per the schedule prescribed.

The licensee shall maintain account of all the transactions taken place on the electronic platform and submit such periodical reports and returns at such times and in such forms as specified by the Director of Agricultural Marketing from time to time to the Director of Agricultural

Power to cancel or suspend spot exchange licenses.- The Director of Agricultural Marketing for reasons to be recorded in writing suspend or cancel spot exchange licence granted by it:

Redressal of disputes.- (1) Dispute redressal shall be done at the spot exchange level through administrative process or through the process of conciliation and arbitration within fifteen days.

1. (2) If any dispute is not redressed at spot exchange level, the concerned may appeal within thirty days to the Director of Agricultural Marketing and the decision of the Director of

Bar of Jurisdiction on Civil Courts.- No Civil Court shall have jurisdiction

to settle, decide or deal with any question or to determine any matter which is by or under this Act required to be settled, decided or dealt with or to be determined under the provisions of section 131C.

Whoever contravenes the provisions of section 131D shall, on conviction, be punished with imprisonment for a term which may extend to six months or with a fine which may extend to five thousand rupees or with both.

No court shall take congnisance of an offence under this Chapter, except upon a complaint by the Director of Agricultural marketing or any other officer authorized by him.] • Section 131C, 131D, 131D, 131E, 131F, 131G, 131H,131I and 131J inserted by Act 23 of 2007 w.e.f. 16.8.2007.