The proposed merger of FMC with SEBI would help streamline the monitoring of commodity futures trading and curb wild speculations, Jaitley said
In a significant move, the Union Government Saturday said commodities market watchdog Forward Markets Commission (FMC) will be merged with the market regulator Securities and Exchange Board of India (SEBI).
Presenting his maiden full-fledged Budget, Finance Minister Arun Jaitley said the government would merge “FMC with SEBI’’.
The proposed merger would help streamline the monitoring of commodity futures trading and curb wild speculations, he added.
To implement the merger, the Securities Contracts (Regulation) Act (SCRA) as well as the Forward Contracts (Regulation) Act (FCRA) would need amendments.
The Financial Sector Legislative Reforms Commission (FSLRC) had recommended that SEBI, IRDA, PFRDA and FMC should be merged into a single entity into a unified financial agency (UFA).
In September 2013, FMC was brought under the Finance Ministry after the emergence of a major crisis at National Spot Exchange Ltd (NSEL).
The move came in the wake of the Rs5,600-crore payment crisis at NSEL. Earlier, FMC was with the Consumer Affairs Ministry.