NEW DELHI, Oct 5: The government is considering a proposal to merge the Forward Markets Commission (FMC) with capital market regulator Sebi to ensure better monitoring of the commodity futures market.
“One of the options being considered by the government is merging FMC with Sebi,” said a senior Finance Ministry official.
Alternatively, the official said, the government may also pursue the long-pending proposal to give more powers to FMC by amending the Forward Contract Regulation Act (FCRA) Amendment Bill.
While FMC is the regulator for commodities trading, while the Sebi regulates the capital markets.
The move would also help in improving the regulatory architecture for the futures commodity trading.
Earlier the Financial Sector Legislative Reforms Commission (FSLRC) had recommended that Sebi, IRDA, PFRDA and FMC should be merged into a single entity into a unified financial agency (UFA).
Last year in September the government had brought FMC under the ambit of the Finance Ministry in the aftermath of a Rs 5,600-crore payment crisis broke out at National Spot Exchange Ltd (NSEL). FMC was earlier under the Consumer Affairs Ministry. (PTI)
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