Forward Markets Commission to be merged with SEBI

Date: September 04, 2015

FMC IRDA PFRDA

F.M. C. to be merged with SEBI from September 28

The government has notified the merger of commodities market regulator Forward Markets Commission (FMC) with Sebi with effect from September 28. 

Finance Minister Arun Jaitley, in his Budget speech, had announced the merger of FMC with the capital market regulator Sebi to strengthen the regulation of commodity futures market.

A unified regulator for commodities and capital markets will help streamline monitoring of commodity futures trading and curb wild speculations. In the wake of a Rs 5,500-crore payment crisis at the National Spot Exchange Ltd, FMC was brought under Finance Ministry in 2013.

Enabling legislation, amending the Securities Contracts Regulation Act (SCRA) 1956 and FCRA 1952 were proposed in the Finance Act, 2015.

pre

In the beginning, FMC was only regulating regional commodity exchanges and its role was expanded after the emergence of national electronic trading platform in early 2000.

Currently, there are three national and six regional bourses for commodity futures in the country. The Financial Sector Legislative Reforms Commission (FSLRC) had recommended that Sebi, IRDA, PFRDA and FMC should be merged into a single entity into a unified financial agency (UFA).