Sebi today said commodity derivatives exchanges can decide on revising penalties only after consultations with it, while providing clarity on the applicability of various norms that were framed by erstwhile Forward Markets Commission.
FMC was merged with the Securities and Exchange Board of India (Sebi) in September last year.
"All commodity derivatives exchanges shall continue to levy penalties they are currently levying and any revision thereof shall be decided in consultation with Sebi," the circular said.
"Accordingly, FMC circulars dealing with penalties including Uniform Penalty Circular dated Mar 05, 2010 shall stand repealed," it added.
As per Finance Act, 2015 all rules, directions, guidelines, instructions and circulars made by FMC or the central government applicable to recognised associations under the Forward Contracts (Regulation) Act, 1952 would remain in force for one year from the date of repealing FCRA or till such time as notified by Sebi, whichever is earlier.
FCRA was repealed on September 29, 2015.
The latest Sebi circular also provided clarity on applicability of various FMC circulars.
According to Sebi, stock exchanges, who regulate and control buying, selling and dealing in commodity derivatives should make amendments to the relevant bye-laws, rules and regulations as considered necessary.
Besides, the bourses have to monitor the compliance with respect to the latest circular through half-yearly internal audit and inspections of stock brokers.
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