| The FMC is planning to adopt the real-time integrated market surveillance mechanism of its capital market counterpart, the Securities and Exchange Board of India (Sebi), which has proved very effective in tracking manipulation. Currently, the FMC gets broker-level positions on the next day morning. |
| It is planning to collect broker-level and client-wise positions in each commodity on real-time basis, and monitor the transactions of exchanges from its office. But it needs more experts to analyse the data. |
| "This can be possible only if we have a comprehensive surveillance system in place," said a senior official of the Commission. The FMC decides broker- and client-wise positions on commodities. These positions need to be monitored. Since the members and clients transact on different exchanges, the FMC wants to monitor their over all exposure. As the futures market positions are leveraged, proper and real-time monitoring of open positions can save damages. |
| The Commission is looking to improve the mechanism of collecting and analysing information to attract more hedgers into the market as it provides more credibility. In the futures market, speculators take risks while hedgers spread risks. While the risk takers are aplenty in the market, to attract more hedgers, a strengthened surveillance mechanism is a must. |
| B C Khatua, chairman of the FMC, said that the strong presence of hedgers would make it difficult for speculators to stretch the market as they would always have to keep the spot market positions in mind. Khatua said that "we want to be fair and firm. Any manipulation has to be dealt with a firm hand." |
| The Sebi's integrated market surveillance system has unearthed some listing day and other manipulations in the market. The commodity futures market is prone to manipulations and real-time monitoring can prevent them, market participants feel. |
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