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The Finance Ministry is keen to strengthen the functioning of the commodity market regulator Forward Markets Commission by providing more infrastructure facilities and operational flexibility.
The Commission, which was operating under the Consumer Affairs Ministry, was shifted to Finance Ministry in September after the Rs 5,600-crore settlement crisis deepened, rattling investor confidence in commodity markets.
To start with, FMC will relocate to a new bigger office space in Mumbai, possibly closer to capital market regulator SEBI at Bandra-Kurla Complex. Currently, FMC operates from a small office in an old building at Marine Lines in south Mumbai.
Speaking to Business Line , Ramesh Abhishek, Chairman, Forward Markets Commission, said the location for the new office has not yet been finalised as the Central Public Works Department has to fix the rate of rent that the Commission can pay. “Based on the rent, a budget provision has to be made and tenders issued. The Finance Ministry is keen on us having the better infrastructure,” he said.
On the time frame by when the process will be completed, Abhishek said “if things move as fast as we expect, then we should be in a new office in next couple of months.”
Besides moving to a new office, the Commission will strengthen the administration by hiring experts in commodity trade and additional staff. It recently floated a tender for buying computer hardware and software, televisions and air conditioners. Earlier this month, the Forward Markets Commission has made a detailed presentation on the functioning of commodity futures market to the newly formed Commodity Derivative Section which will be part of the Capital Market Division under the Department of Economic Affairs.
The Government recently appointed senior SEBI official Pravin Trivedi to the Finance Ministry to assist the Commodity Derivative Section. Other members include K.P. Krishnan, Additional Secretary and Anupam Mishra, former Director with FMC.
On the possibility of the Forward Contract Regulation Act (Amendment) Bill being tabled in the winter session of Parliament starting December 5, Abhishek said the presentation made by FMC to the committee has nothing to do with FCRA Bill.
“It is for the Government to take a call on when to table it in the Parliament,” he added.
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