FMC to be empowered to resolve NSEL crisis

Till law governing spot exchanges enacted, FMC will be announced as an interim regulator to solve payment crisis on FT promoted NSEL

The government is finalising a notification empowering the commodity futures market regulator, the Forward Markets Commission (FMC), to resolve the National Spot Exchange Ltd (NSEL) payment crisis.

Officials said the regulator would handle NSEL’s settlement and related issues till the government designated a formal regulator for spot exchanges. Consumer Affairs Minister K V Thomas on Tuesday said FMC would be given all powers, adding the regulator was in full control of the situation.

Though FMC is taking steps to resolve the crisis, it would have to be given various powers. On Monday, Thomas and the secretary in the ministry had assured brokers FMC would be given full administrative powers to deal with the matter.

Sources said the government notification would also have instructions for NSEL to suspend trading in the e-series contract. As of now, the exchange has suspended e-series trades as a pre-emptive measure.