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New Sebi norms will usher in next set of reforms: Commexes

Press Trust of India  |  New Delhi 

MCX and NCDEX today welcomed the Sebi's new norms for commodities derivatives market saying that this will usher in next set of reforms.

Sebi today set September 28 as the date for merger of Forwards Market Commission (FMC) with itself and announced new norms for commodities market under which exchanges and brokers in this segment will need to comply with rules applicable to their stock market peers.

The new regulations will also come into force on September 28, the date from which Sebi would begin regulating the commodity derivatives market as a unified regulator.

"It is a welcome step. The guidelines related to ownership and networth among others are more or less in line with our expectation," MCX Joint Managing Director P K Singhal said.

He, however, said that the Sebi has not considered the industry's demand to continue to allow some section like corporates, jewellers and base metal traders to trade on the exchange platform directly as members and not through brokerage firms.

Banks are allowed to trade as members on the currency platform, he added.

Echoing views, NCDEX Managing Director and CEO Samir Shah said, "The FMC-SEBI merger is a welcome step and we are looking forward to the final merger and coming under the SEBI umbrella. This is a big milestone for the commodity market and the exchanges and will usher in the next set of reforms."

Other than clearing house, the NCDEX has already complied with the guidelines related to ownership and networth among others, he said adding that the new norm has given three years time for clearing houses to comply.

Currently, there are three national commodity exchanges -- MCX, NCDEX and NMCE and six regional level bourses.

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First Published: Mon, August 24 2015. 20:22 IST