The guidelines for foreign direct investment (FDI) in commodities exchanges, under preparation with the department of consumer affairs, would be announced in the next 4 to 6 weeks, said Yashwant Bhave, secretary, department of consumer affairs. | |
| Speaking at the inauguration of the sixth National Conference on Commodities Exchanges here on Wednesday, he clarified that the Bill to amend the FCRA may come up for discussion before the Parliament in the Budget session. |
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| Bhave said a record 277 per cent growth in commodities futures speaks for itself, with no other sector recording such a spectacular growth in a short span of time. This year, till December, commodities exchanges have clocked a turnover of Rs 27 lakh crore. |
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| Commodities exchanges are a major component of the regulatory framework and the onus on enforcing market integrity and transparency, therefore, rests primarily on the exchanges, which are self-regulatory organisations (SROs), said Bhave. |
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| He asked the regulator and the exchanges to remain vigilant so that market participants would strictly adhere to the rules and regulations laid down by the government. |
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| The secretary added that the combined efforts of all the stakeholders "� the government, the FMC, exchanges and their members, the ancillary institutions such as warehouses "� would further develop the commodities futures in the country on par with the best of the world. |
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| On the Bill amending the Forward Contracts (Regulation) Act, 1952, which was introduced by the Parliament in March 2006 and examined by the Parliamentary Standing Committee, he added that the committee has already submitted its report considering the details on three important issues. |
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| The issues include a need for balancing the interest of both the producers and the consumers, a need for market awareness among all stakeholders and quality control and grading of agricultural produce on a priority to align them with commodities futures. |
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| The committee has also recommended the need to bring spot and futures commodities markets under a single regulator. |
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