 "Stricter FMC norm for commex boards")
The Forward Markets Commission, the commodity futures market regulator, issued new guidelines on Friday. These aim to strengthen corporate governance at commodity exchanges. It has asked these exchanges to limit representation on their boards by category of shareholders.
The directive says, "Anchor investors shall not have representation on the board more than (their) proportion of equity, which should be cut to 26 per cent from the fifth year of the exchange's operation."
Government companies' and stock/ commodity exchanges' representation shall not be less than half the board's size, with a restriction on the number of shareholders. All six commodity exchanges have been asked to restructure their board on the new norms by the end of this month.
The directive says, "Anchor investors shall not have representation on the board more than (their) proportion of equity, which should be cut to 26 per cent from the fifth year of the exchange's operation."
Government companies' and stock/ commodity exchanges' representation shall not be less than half the board's size, with a restriction on the number of shareholders. All six commodity exchanges have been asked to restructure their board on the new norms by the end of this month.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%