InvestorQ : What is the dispute between Motilal Oswal and Dhanera Diamonds over the commodity trading in Crude oil?
Dia Deshpande made post

What is the dispute between Motilal Oswal and Dhanera Diamonds over the commodity trading in Crude oil?

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Ria Jain answered.
1 year ago
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Motilal Oswal has moved the Bombay High Court to recover Rs.80 crore from Dhanera Diamonds against the settlement obligations for trades in crude oil contracts that expired on April 20. This pertains to the disputed trades when MCX had set the settlement price of the crude oil contract at Rs.(-2884) per barrel. It may be recollected that on April 21, MCX had issued a settlement circular assigning a negative due date rate of Rs.2884 for settlement of crude oil contracts which are mapped to the New York Mercantile Exchange’s futures. That was due to the unprecedented fall in global crude oil prices. In the case of Dhanera Diamonds, a client in commodity trading at MOSL, the debit balance in the account exceeded the margins collected. As is the policy, MCX deducted the balance from Motilal Brokerage account but a dispute arose later when Dhanera Diamonds refused to settle its liability towards the settlement, forcing MOSL to go to the High Court. The last word on the issue is yet to be said.

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