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New Delhi: Commodity markets regulator, Forward Markets Commission (FMC), has for the second time extended the deadline till 31st December for exchanges to disband sub-brokers, reports PTI.
A sub-broker is not a member of any commodity bourse but acts on behalf of a member broker as an agent.
FMC had initially set September as deadline for commodity exchanges to discontinue with the system of sub-brokers. The date was further extended up to 30th November.
“The second extension has been given to the commodity bourses to ensure smooth transition to the new system,” an official with FMC said.
In place of sub-brokers, the regulator has allowed registered member-brokers of the commodity exchanges to appoint an “authorised person” (who can have access to the trading platform) with prior approval from the exchange.
In lieu of FMC’s direction, leading commodity exchanges MCX and NCDEX have informed member-brokers to either discontinue sub-brokers or convert them as authorised agent by 31st December.
“Members are requested to take necessary steps to ensure the said transition completed by 31st December positively,” the MCX circular said.
Currently, there are 18 regional and five national level commodity exchanges in the country.