Days after extending the tenure of commodities markets regulator, Forward Markets Commission (FMC) chief BC Khatua by one-year, the Cabinet is likely to discuss the much-delayed amendments to the Forward Contract Regulation Amendment Act -1952 in a meeting scheduled for Thursday. The Bill which seeks to given more power to the FMC has been hanging fire for long.
Though few years back, the government did promulgate an ordinance to amend the FCRA Act, but it lapsed, as Parliament could not clear the Bill to amend the Act.
The Bill, if passed, will confer sweeping powers to the commodities markets regulator, the Forward Markets Commission. It will also lay down rules relating to FMC’s constitution, number of members and powers to regulate commodities derivatives market.
It will empower FMC to take key decisions such as recognising or de-recognising commodity bourses, raising fees from exchange members, imposing penalty on errant market entities and will also open the door for options trading in commodity derivatives.
Recently, FMC chairman BC Khatua told FE that one of his key tasks during his second tenure as FMC head would be to get the FCRA amendment Bill passed in Parliament.