The judgement delivered by the Bombay High Court in Multi Commodity Exchange Vs the CERC case on Friday has accepted the Central Electricity Regulatory Commission?s (CERC) stand that it too has the authority to regulate futures market for physical delivery-based electricity trading.
The court has said that neither the Forward Market Commission (FMC) nor the CERC has the sole and exclusive jurisdiction to regulate and control forward trading and futures contracts in electricity while delivering its verdict in the case on Monday.
The Multi Commodity Exchange had moved the court in 2009, challenging the legality of the power market regulation issued by the CERC. The petition argued that the regulations encroached on the jurisdiction of FMC, which had the sole authority to regulate forward market contracts under the Forward Market Regulations Act.
The petition pressed ahead with court proceedings despite a committee of secretaries suggesting an amicable solution to resolve the jurisdictional issue between two regulators.