Commodity markets regulator Forward Markets Commission (FMC) is coming out with a set of recommendations on ownership pattern in commodity exchanges.
FMC chairman BC Khatua said, ?We will submit our recommendations on ownership pattern in the commodity exchanges with the ministry soon.?
He was addressing a seminar organised by the Indian Chamber of Commerce here on Tuesday. Khatua said that the regulator is in favour of an anchor investor.
The chief of the markets regulator is in favour of market participants like owners of the warehouses and corporates in the interest of larger participation of the physical market players for the diversification of the equity base of the exchanges.
?The commodity exchanges should have an anchor investor who could drive the exchange towards maturity and perfection,? he said. Talking to reporters on the sidelines of the seminar. he said that the anchor investor may include companies directly associated with the commodity markets and warehouses.
According to him, the ban on four commodities, wheat, rice, urad and tur, is likely to be lifted before the planting session.
The Union government has formed a committee headed by Planning Commission member Abhijit Sen to study the impact of futures trading on prices of essential food items.
Earlier he said that indications showed that there was no link between commodity futures trading and price increase.
While commenting on foreign direct investment limit on commodity exchanges, Khatua said the matter is lying with the Cabinet Committee on Economic Affairs (CCEA).
According to him, the reduction in the volume of agricultural commodities in exchanges is mainly attributed to the lack of physical market and liquidity.