GOVT CLEARS DRAFT BILL TO GIVE FMC MORE TEETH

The Union Cabinet approved long-pending amendments to the Forward Contracts (Regulation) Act. This is a prelude to seeking parliamentary approval to make the Forward Markets Commission (FMC) an independent regulator and allow the launch of options in the commodity market, among a host of other changes. In addition, the government proposes to enhance the powers of FMC. The power would be akin to those of the Securities and Exchange Board of India (SEBI).