The Forward Contracts (Regulation) Act- FCRA shall be amended to strengthen the regulatory framework of the commodity derivatives market. Presenting the Interim Budget 2014-15 in the LokSabha today, the Union Finance Minister Shri P. Chidambaram said that Honorable Members will recall the payment crisis in the National Spot Exchange Limited (NSEL).

Following the transfer of the subject to the Ministry of Finance, swift action was taken to sequester NSEL and to ensure that there was no spill over of the crisis to the other regulated segments of the financial market.

Forward contracts regulation to be amended to strengthen commodity derivatives oversight after a payment crisis at NSEL. Amendment proposed to the Forward Contracts (Regulation) framework to strengthen regulation of the commodity derivatives market in response to a payment crisis at NSEL, with oversight transferred to the Ministry of Finance and NSEL sequestered to prevent spillover to other market segments.