Question : FOREIGN COMPANIES IN FUTURES MARKET

(a) whether the Government has imposed a ban on the Foreign Companies from operating in the commodities Futures Market in the country;

(b) if so, whether some foreign companies continue to operate in the Futures Market defying the ban imposed by the Government;

(c) if so, the details thereof and reasons therefor;

(d) whether the Government is considering any proposal to strengthen the Forward Markets Commission to check illegal trading by Foreign Companies;

(e) if so, the details thereof and time by which it is likely to be implemented; and

(f) the other steps being taken by the Government to check operation of Foreign Companies in Futures Market?

THE MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND THE MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI TASLIMUDDIN)

(a) : Foreign Companies cannot participate in the commodity futures Markets directly. Foreign Companies through their Indian subsidiaries, however, can participate through registered brokers of the Commodity Exchanges subject to necessary approval/guidelines for foreign investment.

(b) : There are no foreign companies operating directly in the futures market.

(c) : Does not arise in view of (b) above.

(d) to (f): No Sir. The existing provisions of the Forward Contracts (Regulation) Act, 1952 are adequate to deal with any kind of illegal trading including by Foreign Companies.