Amended FC(R) Act to boost commodity futures

Kolkata, Apr 29 (UNI) The amended Forward Contracts (Regulation) Act would support growth of commodity futures market in India, Forward Market Commission director K S Uma said today.

The Act is presently before the Parliament for approval, she said.

The proposed amendment would allow participation of FIIs, banks and mutual funds in the commodity futures thereby further boosting the trade, she said.

The amendment also proposes allowing options trade for goods, demutualisation of the exchanges, setting up of the Forward Markets Appellate Commission and providing more autonomy to the Forward Markets Commission, Ms Uma said.

The three nationally approved commodity exchanges--Multi-Commodity Exchange of India Ltd (MCX), National Commodities and Derivative Exchange of India and National Multi Commodity Exchange in Ahmedabad--presently conducts around Rs 16,000 crore of business volumes daily, MCX officials said.

MCX would shortly introduce onion, jute, ginger and Bengal Potato futures after getting Forward Market Commission's approval, the officials said.

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