The FMC, in a letter to ACE said there were evidences indicating violation of bye-laws during the last election held in December 1998. According to FMC the panels were reconstituted before the prescribed 25-day limit.

The governing board had delegated full powers to the then president, Kailash Gupta, who was incidentally contesting the election. This decision had generated a debate among brokers.

In a serious allegation to then governing board, FMC said some of the candidate-forms were filled by secretary. ``If such complaints are true, it should not be done in future,'' FMC warned.

It is worth noting that, Kailash Gupta, ex-president had won the election purely on the cancellation of his only rival's form. The rejection created a controversy as there wasuse of technicalities and the board had even rejected the election commissioner's verdict. Some brokers had alleged that some vested interests resorted to use technicalities to secure their victory.As far as FMC's directive is concerned, it wants to reconstitute panels. It also wants that present board should be dismantled, and fresh elections be announced. ``The directive generated confusion among traders as the election was conducted by the earlier board and the FMC has sought an explanation from new board.

Instead of charging the main culprits, FMC is intervening unduly,'' said an ACE official. He wondered why the FMC was silent when trading was stopped last August?

When it had imposed margin in the September 1998 contract, it had invited strong opposition from the brokers but it did not act in the interest of brokers.

In another issue the ACE official questioned the FMC's wisdom when an issued tender of March 1996 contract was settled in a local police station. A leading director said, instead oftaking actions against a former officials who flaunted the rules, the FMC is resorting to pressure tactics under the guise of vigilance.

The FMC is keen to start more futures, but brokers are worried over the present conditions.

``The government may find something interesting if it investigates recent controversy of jute futures, controversy of Hapud gur futures and margin scandal of September 1998 contract of ACE,'' alleged an insider.

``As far as election is concerned, the present governing board has no concern with it, as reconstitution of panels and election was held by the old board. Although there are gross violations of bye laws, but members of the old board should be questioned,'' said Jayesh Shah, president ACE.

``We are ready to reconstitute the panel, we are also ready to convene election again. The governing board has held some discussion regarding FMC's directive,'' said Shah.

Meanwhile ACE has reverted earlier directives of FMC indicating the start of battle between a premier bourseand FMC. Last Thursday's general meeting board had unanimously passed the resolution to remove daily clearing and slip system. ``According to a leading director we have removed daily clearing and introduce by-weekly clearing. If FMC do not grant permission for September futures, we are ready to close the exchange. FMC is simply imitating trading procedure of global futures exchanges,'' he asserted.