The Centre may soon come out with an ordinance to amend the Forward Contracts (Regulation) Act to give autonomy to commodity market regulator Forward Markets Commission.
"The issue is likely to come up before the Cabinet on January 24," Minister of State for Food Processing Industries Subodh Kant Sahai said on the sidelines of an Assocham-organised conference on futures trading.
The proposed amendment in FCRA will give power to FMC to decide on its own listing and de-listing of commodity bourses, give permission to exchanges to start option trading and other regulatory issues.
Assuring that FMC is going to be strengthened, like SEBI, the capital market regulator, Sahai said the government is coming up with an ordinance. "We are not waiting for the Parliament session," he added.
"Within this month, the entire power is coming to FMC," FMC chairman B C Khatua said FCRA amendment may not get priority in the Budget session because of other important issues. So, the government has thought of the ordinance.
Besides, the proposed amendment in FCRA is already delayed by three years, he added. When asked about lifting of the ban on futures trading of wheat, rice,
urad and
tur, Khatua said, "It is a larger sensitive issue to be decided by the government...We are, however, pursuing with the government."
Earlier, addressing the gathering, the FMC chairman said the restoration of trading of wheat, rice and pulses are needed as the decision to ban these commodities has been hurting the sentiment of the market. "It is high time we permit them."
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