According to officials in the Department of Consumer Affairs, their ministry is working on this, ahead of the formal framing of a separate Spot Exchange Regulation Act.
Either the commodities market regulator, the Forward Markets Commission, or the Warehousing Development Regulatory Authority could be entrusted with the job in the next few days.
DCA is the parent agency for both these bodies.
“Someone has to take the responsibility; else, these exchanges will close down, which is not the right way and such a proposal doesn’t exist on the government’s agenda,” a senior official said.
However, the method through which the powers will be entrusted is to be decided.
There is also no global model to regulate nationwide spot exchanges.
In most developed markets, there are reporting agencies for spot markets and generally deals took place on the over-the-counter market.
India has 7,500 mandis, of which 630 are larger and district-level ones.
It is only in recent years that nationwide spot exchanges have come up.
There are three at present.
Apart from NSEL, there is the NCDEX Spot, set up by the National Commodities and Derivatives Exchange and R-Next,
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