Financial Daily from THE HINDU group of publications
Wednesday, Apr 26, 2006
Financial Daily from THE HINDU group of publications Wednesday, Apr 26, 2006 |
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Agri-Biz & Commodities
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Regulatory Bodies & Rulings Trading in foreign commodity exchange terminals needs FMC approval Our Bureau
Mumbai , April 25 Real-time trading in a commodity by opening the terminals of foreign commodity exchanges in the country without prior approval of the Central Government or Forward Markets Commission (FMC), as the case may be, would be deemed as illegal. Persons entering into such contract would be punishable under Section 21 of the FCR Act, 1952, according to FMC release. The issue of foreign commodity exchanges and their members to place dedicated computer terminals in India has been examined by the Forward Markets Commission (FMC) with reference to the provisions of Section 15 and Section 18 read with Section 11 and Section 21 of The Forward Contracts (Regulation) Act, 1952. FMC has clarified that forward contracts, other than those that are (a) entered into between members of a recognised association or through or with such members in goods that are notified under Section 15; (b) complying with the bye-laws of recognised exchanges and (c) not in violation of any contract specification, would be considered illegal and void, said in a release.
More Stories on : Regulatory Bodies & Rulings | Commodity Exchanges
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