Question

Recently Union Government has notified the merger of commodities market regulator Forward Markets Commission (FMC) with Securities Exchange Board of India (SEBI). This decision of government is in line with recommendation of which of the following committees:

• A. Committee on Comprehensive Financial Services for Small Businesses and Low Income Households
• B. Alternative Investment Policy Advisory Committee
• C. Financial Sector Legislative Reforms Commission.
• D. Tax Administration Reform commission (TARC).

Answer 1

The correct option is C Financial Sector Legislative Reforms Commission.

Union Government has notified the merger of commodities market regulator Forward Markets Commission (FMC) with Securities Exchange Board of India (SEBI) in 2015. In this regard, Union Finance Ministry has issued a notification mentioning that Regulation of Commodity Derivatives Market will shift to SEBI under Securities Contracts Regulation Act (SCRA) 1956. Forward Contracts Regulation Act (FCRA), 1952 gets repealed so does the FMC cease to exist. This merger will create a unified regulator for commodities and capital markets which in turn will help streamline monitoring of commodity futures trading and curb wild speculations in the market.