FMC to merge with Sebi by September: U K Sinha

Says the gaps are being evaluated which are there in Sebi-FMC merger

Capital markets regulator Sebi today said it expects the proposed merger of commodities regulator FMC with it to be completed by September-end.

"We are evaluating the gaps which are there (in Sebi-FMC merger). We will be able to take over the responsibility by end of September," Sebi chairman U K Sinha told reporters after its board meeting.

Announced by Finance Minister Arun Jaitley in Budget for 2015-16, the merger will help streamline regulations and curb wild speculations in commodities market, while facilitating participation of domestic and foreign institutional investors and launch of new products such as options.

The Sebi board today took stock of the progress on the merger and was apprised of the issues being faced in this process, Sinha said.

Mumbai-headquartered FMC (Forward Markets Commission) was set up in 1953 under the Forward Contracts (Regulation) Act (FCRA) as a statutory body under the aegis of Consumer Affairs Ministry. It was brought under Finance Ministry in 2013.

In the beginning, FMC was only regulating regional commodity exchanges and its role was expanded after the emergence of national electronic trading platform in 2000.

Seeking to make FMC an autonomous body, the government had proposed amendments to FCRA in 2010 but the concerned bill could not be taken up in the Parliament.

Currently, there are four national and six regional bourses for commodity futures in the country.