New Delhi, Jan 24 (UNI) The Forward Market Commission will be given autonomy through an ordinance to strengthen the legal and regulatory framework with stiffer punishment for violators and stringent provisions for preventing misuse of insider information, the Cabinet decided today.
The ordinance, which would be replaced by a Bill possibly in the Budget session of Parliament, would amend the Forward Contracts (Regulation) Act 1952, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters.
The move had nothing to do with the rising prices of essential commodities and was basically aimed at developing the commodity futures market in an orderly manner, the Minister said.
Official sources said the strength of the FMC would be raised from the present four members to nine, including a Chairman and upto three whole-time members.
None of the members would be allowed to take up any part time or full time employment with any of the dealers involved in commodity futures.
There would also be a ban, for a sufficient period, on taking up a job with such dealers even after demitting office with the FMC.
The minimum penalty for violating the provisions of the Act would go up from Rs 1,000 to Rs 25,000, the sources said.
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