No objection to 100% FDI in brokerages: FMC

The Forward Markets Commission (FMC) has no objection if the government plans to allow 100 per cent foreign direct investment (FDI) in commodity brokerages, as the regualator will take care to protect the functioning of the market, B C Khatua, chairman, FMC, said.

“We have no objection to the government’s decision as long as they conform to our regulatory rules,” Khatua said, referring to recent media reports that 100 per cent FDI in commodity brokerage houses is being considered by the government.

He was speaking on the sidelines of a press conference by the National Multi-Commodity Exchange to unveil its new corporate identity.

Earlier, the Reserve Bank of India had raised objections to foreign investments in Indian broking firms that have commodity businesses. IL&FS, Geojit Financial Services, and STCI, a commodity broking arm of UTI Securities, are cases in point.