(a) whether the Forward Contracts (Regulation) Act, 1952 provides
for the regulation of commodity future markets and the establishment
of Forward Market Commission(FMC);
(b) if so, whether the Government proposes to amend the said
Act to make the Forward Market Commission an autonomous body;
(c) if so, the other functions likely to be given to FMC after
granting it autonomous status; and
(d) the time by which a final decision is likely to be taken
in this regard?
THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS,
FOOD AND PUBLIC DISTRIBUTION (PROF. K. V. THOMAS)
(a) & (b): Yes, Madam
(c): The Forward Contracts (Regulation) Amendment Bill,
2010 proposes to restructure and strengthen the Forward Markets
Commission (FMC) and provide for its financial, functional and
administrative autonomy. The Bill proposes to enhance the powers
of the FMC by devolving most of the existing powers of the Central
Government on the FMC including the following:
# Grant or withdrawal of recognition to commodity associations/
exchanges.
# To supersede the governing body of a recognized association,
if warranted.
# To enhance its powers investigative and penal authority.
These enhanced powers will enable the FMC:
(i) to promote and regulate self-regulatory organizations;
(ii) to regulate the business of associations and intermediaries;
(iii) to call for information from agencies;
(iv) to protect the interests of market participants;
(v) to prohibit fraudulent and unfair trade practices;
(vi) to prohibit insider trading;
(vii) to promote investor education and training of intermediaries;
(viii) to adjudicate and make Regulations; and,
(ix) to investigate intermediary or person associated with the commodity
derivatives market.
The Central Government after passage of the Bill will have power
to issue directions to the FMC from time to time.
(d): The Forward Contracts (Regulation) Amendment Bill, 2010
was introduced in the Lok Sabha on 6th December, 2010. The Honb’le
Speaker of the Lok Sabha, on 16th Dec., 2010, referred the said Bill
to the Department Related Parliamentary Standing Committee on Food,
Consumer Affairs and Public Distribution for examination and report.