The commodity futures market is preparing for the next phase of growth which will see greater participation of hedgers, corporate entities, exporters, processors and producers, said BC Khatua, chairman, Forward Markets Commission (FMC).
The FMC along with the national exchanges convened a meeting of the members of the exchanges belonging to the west zone in Mumbai on Friday. It was the first meet in a series of four meetings proposed to be convened by the FMC in the current financial year for discussing various trade and market related issues.
Khatua said that in order to ensure greater participation in the market, there was a need for a more stringent and responsive regulation that will increase the confidence of market participants in the market, maintain financial and market integrity and discourage malpractices in the market.
While outlining the future plans of the Commission, the chairman stated that the proposed amendments to the Forward Contracts and Regulation Act, 1952 would strengthen the hands of the Commission to effectively regulate the market. He emphasised that because of exponential growth and advent of sophisticated technology which is also available to the manipulators, the task of regulation has become very challenging.?Strengthening of the legal framework which has become some what dated, will enable the regulator meet regulatory challenges thrown by the market and give quick and adequate regulatory response to the same,? he said.