As of Monday, the FMC now ceases to exist, and is bring touted as paving the way for a stronger and deeper commodities market.
The much-awaited historic merger of two market regulators – Securities Exchange Board of India (Sebi) and Forward Markets Commission (FMC) – took place on Monday, in the presence of Finance Minister Arun Jaitley.
As of Monday, the FMC now ceases to exist, and is bring touted as paving the way for a stronger and deeper commodities market.
"The merger of both respective regulators will strengthen regulation of commodity forward markets and reduce wild speculation," finance minister Arun Jaitley had said in his last Budget speech.
Here's what various stakeholders, and Jaitley and Sebi President had to say about the historic event.
Jaitley, speaking at the event said, FMC merger will bring convergence, widen size and scope of markets. He also added that Sebi must ensure commodities trading is free of speculation.
While speaking at the event, Sebi chairman UK Sinha said that the first priority after the FMC merger is to develop trust in the commodities market. He said that all steps will be taken to develop the market.
Commodity exchanges and brokers have called this a “milestone event”, and said that the move will bring more transparency and growth in the sector.
"...we have no doubt that this merger will bring about more transparency in the commodity derivative market and will facilitate its growth," Country's largest commodity exchange MCX Joint Managing Director P K Singhal said in a statement.
"The governance of the commodity markets is now in the able hands of a trusted, credible regulator, who has the proven experience of managing complex market situations," NCDEX Managing Director and CEO Samir Shah said.
Geofin Comtrade CEO and MD Girish Dev said, "Exciting, we say, because never before would have market participants so eagerly waited for themselves to be regulated. But, here with the autonomous Sebi taking over, it ushers in hope for commodities derivatives markets to not only being revived, but drawing in more participants into these markets over the next few years."
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