FCRA (Amendment) Bill to be placed in winter session of Parliament

Kolkata, Nov 10 (UNI) The FCRA (Amendment) Bill 2006 is likely to be placed before the Parliament in the winter session.

The Bill would pave the way for introduction of options in the commodities derivatives market apart from strengthening the regulatory standards, Forward Markets Commission (FMC) member Dr Kewal Ram said here today.

If the Bill goes through, mutual funds, banks and foreign institutional investors could participate in the commodities market.

It would help in introduction of trading in intangibles like weather index.

The Bill specifies that the Securities Appellate Tribunal (SAT) would act as the appellate tribunal for the commodity market, Mr Ram said.

The government would also introduce the Warehouse Receipt and Development Act to improve linkages for physical delivery.

Presently, the compact user group facility is utilised for physical delivery of the commodities.

Mr Ram said the commodities market is expected to surpass the Rs 40 lakh crore mark or the GDP of the country in the current fiscal.

UNI TJP JYN RD 1511