SEBI to reform Commodities Trading to see boost: MoS
Published: Mar 18, 2017
By TIOLCORP News Service
NEW DELHI, MAR 18, 2017: Regulatory reforms are continuous process and neccessary steps are taken continuously to further strengthen and develop the commodities derivatives markets. Subsequent to the merger of the erstwhile Forward Markets Commission (FMC) with the Securities and Exchange Board of India (SEBI) in September 2015, SEBI has taken several steps to reform and boost the trading in commodity derivatives markets.
In order to further boost trading and liquidity in commodity derivatives markets, in consultation with the Commodity Derivatives Advisory Committee and various stakeholders, several initiatives are included in the implementation agenda of SEBI, such as the following:
(i) Permitting new participants in commodity derivatives markets in a phased manner.
(ii) Permitting trading of new products like options in commodity derivatives markets.
(iii) Integration of commodity derivatives market with other exchange traded markets which includes equity, equity derivatives, currency derivatives etc..
In pursuance of an announcement made in the budget speech for the financial year 2017-18, for effecting further reforms in the commodities markets for the benefits of farmers, the Government, initiated the work in the direction of constituting an expert committee for studying and promoting creation of an operational and legal framework to integrate spot market and derivatives market for commodities trading. e-NAM is expected to be an integral part of such framework.
SEBI follows the risk based supervision for various intermediaries such as brokers for equity/ derivatives segment, depository participants etc. SEBI has not finalized any proposal for introducing a risk based supervision system for commodity derivative brokers.
This was answered by Mr Arjun Ram Meghwal, Minister of State in the Ministry of Finance in written to a question in Lok Sabha today.
