AUTONOMY COMING FMC’s WAY THROUGH ORDINANCE

The Cabinet has okayed a plan to issue an ordinance to make changes in the Forward Contracts Regulation Act, 1952. The amendments would primarily empower commodity market regulator Forward Markets Commission (FMC) as outlined under the still pending Forward Contracts Regulation (Amendment) Bill, 2006. The proposed law will elevate the FMC from a government department to an independent regulator. Once this goes through, banks, foreign funds and other financial institutions too can look forward to participation in commodity markets.