Penalties for integrity of commodity futures mkt

By Staff
|
Google Oneindia News

Mumbai, Jan 28: Stringent penalties have been introduced in the Forward Contracts (Regulation) Amendment Bill, 2006, to deter manipulations in the market.

The Bill, which is aimed at amending the Forward Contracts (Regulation) Act, 1952, was introduced in Parliament in March last year, and the Parliamentary Standing Committee has submitted a report, recommending its passage.

The Committee has stressed the need for finding ways and means to put the spot and commodity markets under one regulator. Some other recommendations include the need for balancing the interests of both the producers and the consumers, and to launch an awareness campaign about the market among all stakeholders.

Above all, the Committee has recommended that for better synergy between futures and spot markets, the subject should be included in the Union List or Concurrent List by amending the Constitution.

A detailed discussion was held on the topic during the recently held sixth National Conference of all commodity exchanges in Mumbai which was inaugurated by the Union Consumer Affairs Secretary Yashwant Bhave.

Speaking on the occasion, Mr Bhave said that to meet the challenges of the fast growing market, the regulatory framework should be strengthened.

Forward Market Commission chairman S Sundereshan, while addressing the gathering, also highlighted the need for proper regulation of the market so as to ensure market integrity, financial integrity and consumer protection.

UNI

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