The merger of two regulators, the over 60-year-old commodities regulatory body Forward Markets Commission (FMC) and the Securities and Exchange Board of India (Sebi) marks radical change while regulating commodity futures market. Finance Minister Arun Jaitley, formalised the merger by ringing the the customary stock market bell.
The Sebi chairman UK Sinhasaid commodities market players will have to adjust to the new regulations witin one year in order to follow the same norms applicable to their equity segment peers.
A unified regulator for commodities and capital markets will help streamline monitoring of commodity futures trading and curb wild speculations. In the wake of a Rs 5,500-crore payment crisis at the National Spot Exchange Ltd, FMC was brought under Finance Ministry in 2013. Starting September 29,commodity brokers will need to increase their net worth and come under direct Sebi oversight.