The Securities and Exchange Board of India (Sebi) is exploring ways to remove discrepancies in the price polling mechanism used for settlement of futures contracts. Spot agri commodities markets in India are unorganised, with traders quoting different prices. Commodity exchanges have tried best to arrive at a standard price almost similar to the prevailing market price through speaking to large and reliable traders in various mandis across the country, which is termed as polling. Such benchmark price is used for the settlement of futures contracts also. But, it is learnt that Sebi has referred this matter to its internal committee on commodities market to chalk out a more transparent mechanism, which is of global standards. “The current system of price polling can be manipulative and lead to price rigging. We are looking to devise a more transparent mechanism to arrive at the spot price of commodities. We could have the rules released soon,” said a senior official on condition of anonymity.
Source : http://www.business-standard.com/article/markets/sebi-to-bring-in-transparency-in-price-polling-115122400027_1.html