FMC plans mandatoryregistration for brokers

The Forward Markets Commission (FMC) plans to make it mandatory for commodity brokers to register themselves with it, chairman S Sundareshan said Monday.

"We are working on a scheme for commodity brokers. Registration fees for brokers and other intricacies are being worked out," Sundareshan said.

Asked whether the market regulator would levy turnover or transaction tax on commodity brokers, he said: "We are of the view that FMC cannot subject brokers to turnover tax. As far as registration tax for brokers is concerned, there will be a flat rate."

If the FMC makes registration mandatory for commodity brokers, it would be the pattern of stockbrokers who are registered with the Securities and Exchange Board of India. The FMC comes under the purview of the ministry of consumer affairs.

Agriculture Minister Sharad Pawar had last month ruled out the merger of FMC with SEBI. The minister said the government would rather give more teeth to the commodity market regulator.

Currently about 1,000 commodity brokers are registered with the three national commodity bourses""Multi Commodity Exchange of India, National Multi Commodity Exchange of India and National Commodity and Derivatives Exchange.