The Forwards Markets Commission (FMC) has proposed a change in the Forwards Contracts Regulations Act, 1952 to increase the delivery and payment for rice and basmati within the country to 30 days from the current stipulation of 11 days.
Section 27 of the Act empowers the central government to issue notification from time to time to give effect to the changing economic environment and economic policies of the government of India.
Trading in basmati rice and rice are governed by a notification issued on March 2, 1959, by the Centre, which envisages the delivery and payment for the commodity within 11 days. In case the entire process takes more than 11 days, the deal becomes a forwards contract. However, forward trading in rice is completely banned in India.
A ready delivery contract has been defined by the Forwards Markets Commission (FMC) as,
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