In commodity exchanges in India, Index Futures are not permitted, as some of the provisions of the FCRA do not allow the same. What is the full form of FCRA?

Foreign Commodities Regulation Act

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Forward Commodities Repurchasing Act

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Forward Contracts Regulation Act

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Financial Contracts Reformation Act

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Solution

The correct option is C Forward Contracts Regulation Act
The full form of FCRA is Forward Contracts Regulations Act .

In 1952 , FCRA act was enacted to provide for the regulation of certain matters relating to forward contracts , the prohibition of options in goods and for matters connected therewith.

Forward contract is a contract between two parties to buy or sell an asset at a specified future time at a price agreed up on today. Index futures are contracts based on a financial index , which can be bought or sold for speculative or hedging reasons , or for future delivery.

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