FMC withdraws registration of intermediaries under other regulators

FMC also said that registration, unique codes already issued to such intermediaries are hereby withdrawn

Drawing a line among various regulators connected with commodity exchanges directly or indirectly, the Forward Markets Commission (FMC) has withdrawn registration of intermediaries outside its direct regulatory control with immediate effect.

 

In a circular as on date, the FMC said, “The practice of registration of intermediaries like depository participants, assayers and warehouses shall be discontinued forthwith. Also, the registration and the unique codes already issued to such intermediaries are hereby withdrawn. Henceforth, such intermediaries shall not use the registration/unique code issued by the Commission.”

 

The FMC, therefore, partly modified its 2006 circular in which the commodity derivatives markets regulator had mandatorily asked intermediaries for registration.

 

“This circular defines roles of other regulators and makes them accountable also. While depository participants come under the Securities and Exchange Board of India (SEBI), assayers and warehouses would directly come under the Warehousing Development and Regulatory Authority (WDRA). Hence, the roles f regulators will be defined,” said an industry official.

 

Many intermediaries that do not come directly under the FMC were also issued unique code and registration numbers. FMC had also issued codes to warehouses accredited by commodity exchanges that do not come directly under the commodity regulator’s jurisdiction.

 

“It has come to the notice of the Commission that some of the intermediaries like-Depository Participants, Assayers and warehouses etc. registered and issued with Unique Codes do not come under its regulatory purview,” the circular said.

Exchanges are directed to submit returns relating to intermediaries registered with the commission and associated with individual exchanges on regular basis.