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FM proposes merger of Forwards Markets Commission with SEBI

02 Mar 2015 Evaluate

The Union Finance Minister Arun Jaitley has proposed to merge the Forwards Markets Commission (FMC) with Securities and Exchange Board of India (SEBI). The FM in his Budget speech has proposed it in order to strengthen regulation of commodity forward markets and reduce wild speculation.

Enabling legislation, amending the Government Securities Act and the RBI Act is proposed in the Finance Bill, 2015. 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.

Forward Markets Commission (FMC) is the chief regulator of commodity futures markets in India. This financial regulatory agency is overseen by the Ministry of Finance. The Commission allows commodity trading in 22 exchanges in India, of which 6 are national.