A Good and Big news for Indian Commodities Market

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.

Soy oil remains volatile ahead of the Union Budget in Indian Market

Weak global cues of soy oil and crude oil keeps Indian market sentiments subdued in physical as well as futures markets.

Physical markets traders however opine that sooner or later prices are bound to improve with the start of summer in north India after Holi Festival.

They seems downside limited in India market.

Union Budget in India is also scheduled next week on 28th Feb.

Oilseeds industry in India is in favor of gradual increase in the import duty on the refined edible oil. This is to be seen what happens in Budget.

Thus market will remain more speculative and will  follow less demand and supply fundamentals. 

A cautious trade is advised amidst high volatility.

NCDEX Soy oil April Contract