The government is likely to set up a panel to find the successor to commodity markets regulator FMC Chairman BC Khatua.
Khatua, who retired in 2010 as chairman of the Forward Markets Commission (FMC), will complete a one-year extension of service on July 31, this year.
According to highly placed sources, the Consumer Affairs Ministry, which frames policy for the commodity futures market and FMC, has asked the Department of Personnel and Training to constitute a panel to find the new FMC chairman.
Sources also mentioned that Khatua may not get a second extension, though he played a key role in strengthening regulations in the commodity derivatives market during his tenure.
The name of KM Abraham, who is currently a whole-time member (WTM) of the Securities and Exchange Board of India (Sebi), is also doing the rounds for the post of FMC Chairman.
Abraham's term at Sebi ends this month and he is a 1982 Kerala-cadre Indian Administrative Services (IAS) officer.
However, sources also said that Abraham can not be elevated as FMC chief as per the present rules, as one of his IAS batchmate's is already working at a junior post in the FMC.
The FMC regulates futures trading in agricultural and non-agricultural commodities on five national and 18 regional exchanges, which made a total turnover of Rs 1,19,48,942 crore in the 2010-11 fiscal.
