Sebi notifies revised regulations ahead of FMC merger

Ahead of FMC merger with itself, Sebi today amended its regulations that would allow functioning of the commodities derivatives market and its brokers under the ambit of the capital market regulator.
The amended regulations include those related to stock exchanges and clearing corporations. These new norms will also come into force on September 28, the date from which Sebi will begin regulating the commodity derivatives market as a unified regulator.
Commodities market regulator Forward Markets Commission's (FMC) merger with Sebi would be effective September 28.
The Securities and Exchange Board of India (Sebi) today notified revised regulations, including those pertaining to regulatory fee on stock exchanges, stock brokers and sub-brokers.

Among others, a regional commodity derivatives exchange should pay to Sebi an annual regulatory fee of Rs 50,000 within 30 days of conclusion of the relevant financial year, according to the amended norms.
In the case of national commodity derivatives exchanges, the net worth for a self clearing member should be Rs 1 crore and for a clearing member, the same should be Rs 3 crore.

The deposit amount in the case of national commodity derivative exchange would be Rs 50 lakh for both self-clearing and clearing members.
With regard to regional commodity derivatives exchanges, the net worth level and deposit amount for self-clearing and clearing members would be specified by Sebi from time to time.

Sebi board, last month, approved new norms for commodities derivatives market under which exchanges and brokers in this segment would need to comply with rules applicable to their stock market peers.
The government has notified the merger of FMC with Sebi with effect from September 28.
"The Forward Contracts Regulation Act (FCRA), 1952, gets repealed and Regulation of Commodity Derivatives Market will shift to the Securities and Exchange Board of India (Sebi) under the Securities Contracts Regulation Act (SCRA), 1956, with effect from September 28, 2015," the Finance Ministry had said in a statement last week.