In a daring move, the Forward Markets Commission is considering to introduce differential margins for hedgers and speculators in commodity exchanges across the country.
FMC chairman B C Khatua said differential margins were being considered as the perceived risk of hedgers and speculators was different.
The differential margins would be dynamic and not constant since the market participation of various stakeholders in different commodities would vary significantly.
The FMC met the representatives of various associations of growers, manufacturers, traders, commodity boards, federations, chambers of commerce and other trade bodies of southern and western states recently.
Addressing a press conference after the meeting, Khatua said the FMC was also preparing for index-based trading of commodities. "Trading through options and indices can minimise the risks in commodities," he said, adding that the regulatory body would also like to employ commodities experts on a full-time basis.
Khatua is hopeful that the commodity markets in the country will mature in three to four years.
He also expects the Parliament to make the necessary amendments to the Forward Contracts (Regulation) Act shortly, giving more autonomy to the statutory body.