Forward Markets Commission’s Administrative Control shifted to Finance Ministry
The control of Forward Markets Commission was transferred to Ministry of Finance from Department of Consumer Affairs under the Ministry of Food.
The administrative control of Forward Markets Commission (FMC), the chief regulator of Forwards and Futures Commodity Markets in India on 9 September 2013 was transferred to Ministry of Finance following the orders of Government of India. Earlier, the FMC was under the control of the Department of Consumer Affairs under the Ministry of Food.
With this decision, the regulators of financial sector like SEBI, RBI, IRDA and PFRDA, all have been brought under one roof and that is Ministry of Finance.
The Government notified its decision to bring the commodity markets regulator Forward Markets Commission (FMC) under the ambit of the Finance Ministry on 6 September 2013. The proposal to this effect was moved in August 2013 in the wake of the alleged scam in the National Spot Exchange Limited (NSEL) of 5600 crore rupees. NSEL stopped its functioning in the month of August 2013 following the Governments orders which were issued in the wake of violation of certain rules.
About Forward Markets Commission (FMC)
Forward Markets Commission (FMC) headquartered at Mumbai, is a statutory body set up in 1953 under the Forward Contracts (Regulation) Act, 1952. It is a regulatory authority which was overseen by the Ministry of Consumer Affairs, Food and Public Distribution, Govt. of India. Recently, with the decision of Government of India the administrative control of FMC was shifted to Union Finance Ministry.
FMC under its ambit regulated futures trading on 21 commodity bourses that includes MCX and NCDEX.
The Government’s decision on FMC would help in increasing the coordination between the market regulators. It will also be helpful for the government in resolving the NSEL payment crisis of 5600 crore rupees.