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About Forward Markets Commission of India FMC

India's Forward Markets Commission FMC, whose full name is Forward Markets Commission and whose head office is in Mumbai, isIndiaRegulator of commodity futures markets. FMC is the primary regulator of forward and futures markets in India. The FMC is under the Ministry of Consumer Affairs, Food and Public Distribution, as futures trading in India has traditionally been in food commodities.

The FMC is a corporate body established under the Forward Contracts (Regulation) Act, 1952. The Act provides that the Commission shall consist of at least two and not more than four members appointed by the Central Government and the Chairman of the FMC shall be nominated by the Central Government.

At present, there are five national exchanges in India, namely, Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX), National Multi Commodity Exchange (NMCE), Commodity Exchange of India Limited (CXIL) and ACE Derivatives and Commodity Exchange (ACE D&C), which regulate forward trading in 113 commodities. In addition, under the Forward Contracts (Regulation) Act, 1952, the FMC has authorised 16 commodity-specific exchanges for regulating trading in various commodities.

History of Forward Markets Commission of India FMC

The FMC was established in 1953 under the provisions of the Forward Contracts (Regulation) Act, 1952. According to the terms of the regulation, the FMC must consist of two to four members, one of whom will be the Chairman appointed by the Central Government.

For decades, the Forward Markets Commission (FMC) has been functioning as an independent entity to regulate commodity trading in the country. In the initial years, the FMC's regulation of the commodity futures segment fell under the purview of the Ministry of Consumer Affairs, Food and Public Distribution (India). This was mainly because futures were mainly traded in food commodities.

However, the FMC was transferred in September 2013 to the Ministry of Finance. This was due to the fact that trading in commodity futures had expanded beyond food-based securities, making it more of a financial activity. Subsequently, the FMC was merged with SEBI in September 2015 to strengthen the regulation of commodity futures.

Functions of the Forward Market Committee FMC

The Forward Markets Commission of India (FMCI) has the primary responsibility of regulating and supervising the commodities and futures markets, but it also has other specific functions. Including:

To provide timely advice to the Central Government on any issues arising out of the administration of the Forward Contracts (Regulation) Act, 1952. To provide timely advice to the Central Government on the grant or withdrawal of such recognition by any association. To observe and supervise the forward market in India and exercise powers under the Forward Contracts (Regulation) Act, 1952, as appropriate. To collect and disseminate any necessary information relating to the trading conditions of commodities covered under the Act (such information may relate to supply and demand or commodity prices). To make recommendations for the improvement of the forward market in India.

In order to fulfil the above functions, the Forward Markets Commission has been vested with various powers, including the power to be regarded as a civil court. These powers include:

Summoning any person to compel his attendance and examination under oath. To require the production and discovery of any document or papers. Receive evidence by affidavit. Request any public records from any office.

FMC regulated exchanges and commodities

The Futures Market Commission (FMC) regulates all national and other commodity exchanges in the country and the commodities traded on them. The national commodity exchanges monitored by the FMC include:

National Commodity and Derivatives Exchange Limited (NCDEX) Multi Commodity Exchange of India (MCX) National Multi Commodity Exchange of India (NMCX) Indian Commodity Exchange (ICEX)

In addition to these national exchanges, there are about 20 exchanges that trade specific commodities. Overall, the categories of commodities and commodity futures traded in the Indian market include:

Consumption of cereals such as pulses, grams, wheat, maize and millet Spices such as turmeric and pepper Edible oilseeds such as mustard, peanut, sunflower, cottonseed, soya and rice bran oils Precious metals such as silver and gold Metals such as zinc, lead and copper Fibres, such as jute and cotton Energy products such as crude oil and natural gas

concluding remarks

The establishment of the Forward Markets Commission, FMC, regulated and simplified the commodity futures market in India. When the FMC was later merged with SEBI, the existing controls were further improved. Today, the FMC and RBI, andIRDA respond in singing SEBI Together with other regulators, such as the European Union, it ensures that the interests of investors and clients are protected in the financial markets.

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