Forward Markets Commission (FMC) is now fully covered by the capital market regulator SEBI after the merger. It is first ever merger of two regulatory bodies.
- Merging of SEBI and the FMC was decided by the Congress in the Union Budget of 2014-15
- SEBI was set up in 1988 as a non-statutory body for regulating the securities markets. It became an autonomous body in 1992 with fully independent powers.
- FMC was a regulator for commodities markets since 1953 but due to lack of powers it led to alleged irregularities and speculative illegal activities like ‘dabba trading’ and these became the part of this segment.
– Also the NSEL (National Spot Exchange Ltd) scam let down this market with money crisis of Rs 5000 crores.
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