Section 17(2)(xi) in The M.P. Krishi Upaj Mandi Adhiniyam, 1972
(xi)with a view to maintain stability in the market (a) take suitable measure to ensure that traders do not buy agricultural produce beyond their capacity and avoid risk to the sellers in disposing of the produce; and (b) grant licences only after obtaining necessary security in cash as bank guarantee according to the capacity of the buyers;