You are here: Home » Budget » Reactions » Financial Sector
Business Standard

FMC-Sebi merger was needed: Samir Shah

This will pave the way for widening the scope of participation by banks, foreign institutional investors, mutual funds, etc, in the commodity exchanges

Business Standard  |  New Delhi 

Samir Shah
Samir Shah

The has put forth an enabling environment for the growth of commodity markets. The Forward Markets Commission's (FMC's) merger with the Securities and Exchange Board of India (Sebi) addresses the long-awaited need to strengthen the regulation of commodity markets. This will pave the way for widening the scope of participation by banks, foreign institutional investors, mutual funds, etc, in the commodity exchanges.

With the adoption and application of the Securities Contracts Regulation Act, the introduction of a wide array of financial instruments like options and indices in the nascent commodity derivatives market now seem possible. This also means that commodity markets will align with the functioning of the securities markets. While the development is positive for the financial markets, the role of agriculture commodity derivatives in the developing economy will have to be taken into consideration and given due importance..

Read our full coverage on Union Budget


Another important area that has been given its due is the creation of a national market for agricultural produce. The recognised that farmers needed to be incentivised through realisation of reasonable price for agricultural production, and the reiteration of the creation of Unified Market Platform validates the government's resolution. This is a welcome move and vindicates NCDEX's stand.



Samir Shah
MD & CEO, NCDEX

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, March 01 2015. 00:13 IST
RECOMMENDED FOR YOU