The government proposed the merger of commodity futures market regulator Forward Markets Commission (FMC) with stock market watchdog Securities and Exchange Board of India (Sebi), a move intended to strengthen regulation of the 11-year commodities market, facilitate domestic and foreign institutional participation and launch of new products like options.
The merger of FMC with Sebi will strengthen regulation of commodity forward markets and reduce wild speculation, said finance minister Arun Jaitley, in his Budget speech.
The entire transition, to be overseen by an officer on special duty appointed by the government, will take place over the next six months to one year. Initially, the FCRA (Forward Contracts Regulation Act) would be repealed and the definition of securities under the Securities Contracts (Regulation) Act and the Sebi Act would be amended to include commodity derivatives.
All the employees of FMC -excluding its members -would be either transferred to the central government or Sebi.
The merger of FMC with Sebi will strengthen regulation of commodity forward markets and reduce wild speculation, said finance minister Arun Jaitley, in his Budget speech.
The entire transition, to be overseen by an officer on special duty appointed by the government, will take place over the next six months to one year. Initially, the FCRA (Forward Contracts Regulation Act) would be repealed and the definition of securities under the Securities Contracts (Regulation) Act and the Sebi Act would be amended to include commodity derivatives.
All the employees of FMC -excluding its members -would be either transferred to the central government or Sebi.
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