The Forward Markets Commission (FMC) has made audit of regional exchanges mandatory by auditors appointed by it. At present, regional exchanges appoint their own auditors and these reports are given annually to the FMC.
The ministry of food and consumer affairs (the parent ministry for the FMC) believes regional exchanges need to be resurrected to preserve commodity- specific local talent in the market. The regional exchanges have been urged to work out a common online screen-based trading platform,to bring more transparency and create economy of operations.
“The government may help through a one-time grant if the exchanges come forward with a viable idea for a common online platform, rather than the present public outcry system,” said an official source.
Most regional exchanges are currently surviving on rental income, by letting out the building space, and returns on fixed deposits. Besides, FMC has observed that some are using their own premises to trade on national exchanges, which is evident from high margins that do not correspond with the minuscule client size. Such practices are prohibited under FMC norms.