Chennai, Nov 23 (UNI) Forward Markets Commission (FMC) today said Commodity Futures Market was preparing itself for the next phase of growth that would see greater participation of hedgers, corporate entities, exporters, processors and producers.
Talking to newspersons here after a meeting of the members of the exchanges belonging to the South Zone, FMC Chairman B C Khatua said in order to ensure greater participation in the commodity market, there was a need for more stringent and responsive regulation that would increase the confidence of the Investors in the market transparency.
He emphasised on the need of the members educating their clients, especially new ones on futures trading to guard against reckless trading and unrealistic expectations.
"Full tranparency in client dealings and prompt settlement of disputes with clients would enable and promote sustainable growth in valume and clientele", he added.
Mr Khatua said various aggregation models with or without financial support from banks, may be piloted in the market place by the exchanges to facilitate farmers participation in the futures market.
The FMC was committed to adopting best practices that would make the market client friendly and removing all impediments to healthy growth of the futures market, he said advocating constant dialogue amongst the various market participants to create a health and responsive market environment.
Earlier, in the technical session, several issues were discussed by the participants such as broadbasing of contracts and uniformity in contract designs across exchanges, issues in hedgers' participation, position limits and margin requirements, redressal of grievances, membership criteria in the exchanges, capital adequacy of members, different margining and discussion forum for developemnts in trade.