Work on proposed amendments to FCRA, 1952, on progress

Mumbai, Jan 10 (UNI) Union Ministry of Consumer Affairs is in favour of strengthening the regulatory framework in the commodities sector with a view to meeting the challenges of the fast growing market.

Inaugurating the sixth national conference of commodity exchanges here today, Secretary of Government of India's Department of Consumer Affairs, Yashwant Bhave, said that the bill relating to Forward Contract (Regulation) Act, 1952, which aims at strengthening the regulation of the sector, has already been examined by the Parliamentary Standing Committee.

The passing of the proposed Bill, which is likely to be introduced on the floor of Parliament during its forthcoming session, would make Forward Market Commission (FMC) autonomous and capable to regulate the market more effectively, he said.

However, the secretary asked the FMC to use its powers under the existing legal framework to eliminate the occurrances of any manipulation in the futures market or any violation of regulatory measures.

He patted the FMC for its act of suspending some members who had repeatedly violated the open position limits in the commodity futures market.

The secretary said that the FMC and the exchanges should remain vigilant so that market participants strictly adhere to the laid down rules and regulations.

Commenting over the proposed Bill, FMC Chairman S Sundereshan said ''We should appreciate the message conveyed by the futures market. So please do not kill the messanger''.

He recognised the role of regulator in the direction of ensuring that the message is formulated without manipulations.

Union Minister of Agriculture, Consumer Affairs, Food and Public Distribution, Sharad Pawar, could not make it to the event.

However, he said through a message that ''With the opening up of the Indian economy, we have to follow the international best practices in our manufacturing, trade and commerce''.

India has great strengths in agriculture and the commodity exchanges are helping the country's agriculture in obtaining competitive prices, he added.

UNI