Budget 2015: Proposal to merge FMC with SEBI
The Indian government proposed in the Union Budget 2015 the merger
of Commodities Futures Market regulator i.e. Forward Markets Commission (FMC)
with Stock Market Regulator i.e. Securities and Exchange Board of India (SEBI)
with the aim to further strengthen commodities market, allow more access to the
domestic and foreign institutional players.
This is a welcome step of the Government as it will provide more
powers to the regulators.
However it is to be seen that how and when all these this will
take place and finally in what shape it emerge.
But one thing is sure, that more transparency and consistency will
be there in commodities market transaction and duplication of many items like
KYC may be avoided.
Further, new products like Options, Indices, weather derivatives
and many more may be introduced after the merger.
The most important point is how soon this merger takes place.
