Autonomy Sought For Fmc

The three-member internal committee on Forwards Market Commission (FMC) has recommended autonomous status to the commission in line with the Sebi Act, delinking it from the ministry of food, public distribution and consumer affairs and to enhance its powers as a regulatory agency for commodities trading in the country including powers of investigation, compounding of offences, search and seizure.

The recommendations have been forwarded to the standing parliamentary committee and it is likely to be tabled in parliament during the forthcoming monsoon session, sources at FMC said.

The committee has also sought to induct members from the Securities and Exchange Board of India, the Reserve Bank of India, academicians and commodities experts on the board of FMC, if not whole-time than part-time. The status of FMC chairman is also proposed to be raised to the level of chairman- Sebi.

 

The committee has recommended that FMC be given powers to compound the offenses as at present most have been specified as cognizable offences in which powers of investigation and prosecution are with state police authorities. One of the main recommendations is to allow the FMC to levy fees, fines and penalties. This change alone will give the FMC legislative powers. Amending Section 20 and 21 of the Act and linking the punishment to the value of the underlying contract will ensure that offences will be punished appropriately.

The recommendations also ask to empower FMC to suspend members along with a prohibition in trading, superseding governing bodies of exchanges and suspension of operations of exchanges.

Another major recommendation is the removal of the words