Apropos the report "FCRA Bill may be tabled in House today" (March 21), this is to clarify that the Forward Markets Commission (FMC) is not the regulator of spot exchanges. As a matter of fact, there is no law providing for the regulation of spot exchanges. The Department of Consumer Affairs under the Ministry of Consumer Affairs, Food and Public Distribution has nominated FMC as the designated agency for observing the adherence to stipulated terms and conditions by the three spot exchanges, to which an exemption has been granted for trading in one-day duration forward contracts under Section 27 of the Forward Contracts (Regulation) Act, 1952. For this purpose, these spot exchanges furnish weekly and fortnightly reports relating to the trade data to FMC. Recently, one of the spot exchanges was asked by FMC to remove misleading information from its website, in which it mentioned that FMC was one of the regulators for the exchange.
P Chalapati Rao
Deputy Director
Forward Markets Commission
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