Cabinet clears ordinance for FMC autonomy

Options trading in goods and commodity derivatives are expected to be  launched soon with the union cabinet giving its approval for the amendment of Forward Contracts (Regulation) Act, 1952 through an ordinance.

The move will provide autonomy to Forward Market Commission (FMC), which is the national regulator for commodity futures markets.

The amendment will increase the numbers of commission members from four to nine and also bar the future employment of members with any person dealing with commodity market or intermediary.

With this ordinance, the commission also gets power to recruit officers and employees. The ordinance proposes to enhance penalty for defaulters to Rs 25,000 from the current level of Rs 1,000.