2. Forward Market Commission (FMC) is the chief
regulators of forward and future markets in India.
It is headquartered in Mumbai
Mr.Ramesh Abhishek replaced Mr.B.C.Khatua as
the chairman of the commission in 2011
3. Established in 1953 under the provision of the
forward contract (regulation ) act, it consist of 2 to
4 members, all appointed by the Indian
government.
Currently the commission allows trading in 21
exchanges in India, of which 5 are national
FMC falls under the Ministry of Consumer Affairs,
Food and Public Distribution because futures
traded in India are traditionally on food
commodities
4. To advise the central government in respect of the
recognition or the withdrawal of recognition from
any association
To keep forward markets under observation and to
take such actions in relation to them, in exercise of
the powers assigned to it by or under the act
To make recommendations generally with a view
to improve the organization and working of
forward market .
5. To undertake the inspections of the accounts and
other documents of registered association or any
member of such association whenever it considers
is necessary
To collect and publish information regarding the
trading condition in respect of goods to which any
provision of the act is made applicable including
information regarding supply , demand and price,
and to submit to the central government.
6. The commission has powers of deemed civil court for
Summoning and enforcing the attendance of any
person and examining him on oath
Requiring the discovery and production of any
document
Receiving evidence on affidavits
Requisitioning any public record from any office
7. The Forward Market Commissions prescribe
following regulatory measures
Limit on net open position as on the close of an
individual operator and at member level to
prevent excessive speculation.
Imposition of margins to prevent defaults by
members/ clients
Physical delivery of contracts and penalty for
default/delivery obligations
8. Forward Markets Commission is persuading
increasing number of Exchanges to switch over to
electronic trading, clearing and settlement, which
is more customer-friendly. Commission has also
prescribed simultaneous reporting system for the
Exchanges following open out-cry system. These
steps facilitate audit trail and make it difficult for
the members to indulge in malpractices like,
trading ahead of clients, etc.
9. The Commission has also mandated all the
Exchanges following open outcry system to display
at a prominent place in Exchange premises, the
name, address, telephone number of the officer of
the Commission who can be contacted for any
grievance. The website of the Commission also has
a provision for the customers to make complaint,
send comments and suggestions to the
Commission.
