The Hindu Business Line : FMC forms panel to study hurdles in commodity futures

THE Forward Market Commission (FMC) has constituted an 11-member co-ordination committee to sort out issues related to futures trading in commodities.

The main objectives of the committee will be to discuss and resolve roadblocks, which affect the commodity exchanges and market.

The committee is expected to recommend policy measures for healthy development of the forwards/futures market to the FMC and the Government. The committee will review and examine developments in individual commodity exchanges, which have implications for forward/futures markets in general.

The committee is headed by Mrs Padma Swaminathan, a Member of Forward Market Commission. Other members include Mr D.S. Kolamkar, Director FMC (Convenor); Mrs K.S. Uma, Director of FMC (Member) and top officials of other commodity exchanges.

The committee will also examine introduction and implementation of reform packages by the exchange and to ensure that the objectives of financial integrity, market integrity and customer protection are safeguarded.

Also, the committee will explore the possibilities of collaboration/co-operation among exchanges for avoiding fragmentation of trade without sacrificing the advantages of competition on various issues such as setting up industry-wide, Self-Regulatory Organisation (SRO), launching awareness programmes and common clearing house.

The co-ordination committee may meet at Mumbai or such place in the country, as it considers necessary.

Meanwhile, the first meeting of the co-ordination committee was held at the FMC office in Mumbaion Friday