SEBI Now Big Boss of Commodity Trading Also

In accordance of the announcement made by finance minister Arun Jaitley during budget speech, government has issued notification to repeal the FCRA, 1952 and made SEBI to be the overall boss for both equity market and commodity market. With this notification the regulation of Commodity Derivatives Market has been shifted to SEBI from September 2015.

“In exercise of powers conferred by Sections 131 and 133 of the Finance Act, 2015 (20 of 2015), the Central government hereby appoints the 28th Day of September, 2015 as the date on which the provisions of Part I (excluding Section 132) and Part II of Chapter VIII of the said Act shall come into force,” government release quoted. With this change the Forward Contracts Regulation Act (FCRA) 1952 gets repealed and all the regulation of Commodity Derivatives Market will not get shifte to Securities and Exchange Board of India (SEBI) under Securities Contracts Regulation Act (SCRA) 1956. Experts are of the opinion that this will bring much more sync and synergy into both the markets as this was required since long ago.

Importantly action has been taken in order to comply with the announcement made by the Finance Minister Arun Jaitley during his Budget Speech while presenting the General Budget 2015-16. Finance Minister had proposed to merge the Forwards Markets Commission (FMC) with SEBI to strengthen the regulation of Commodity Forward Markets.