Strengthen regulatory set up: FMC

The financial meltdown in the US economy is unlikely to affect the Indian commodity sector but there is a need to strengthen the regulatory mechanism in the country, a top government official said.

“The financial meltdown in the US is a great lesson for us. It may not affect the commodity sector in India but we need to strengthen our regulatory mechanism,” Forward Markets Commission (FMC) Chairman B C Khatua said, while addressing the Globoil India conference here. Asian countries and India have successfully bounced back from the 1997-98 meltdown.

“US meltdown was a case of greed for money. Allowing markets to go unregulated is a dangerous thing. The US housing and financial sectors have been pretty ambitious and greedy in the race to retain the number one position,” Khatua said.