The Ministry of Finance is in the process of strengthening the regulatory framework of the commodity derivative markets for some time. As part of this process, greater empowerment of Forward Markets Commission (FMC), the market regulator is also being done.

Accordingly, a need was felt to strengthen the regulatory framework by empowering the FMC to effectively regulate the intermediaries of the commodity derivative markets. To enable this, it has been decided to notify appropriate Rules by the Central Government.

As a transparency enhancing mechanism and therefore, to obtain public comments, a draft of the said Rules is hosted on the website of the Ministry of Finance at http://finmin.nic.in

Feedback/ comments on the draft Rules may be sent to Shri Lekhan Thakkar, Director, Commodity Derivatives Division, Department of Economic Affairs, Ministry of Finance at [email protected] within 21 days.

Regulatory empowerment of forward markets intermediaries: draft rules open for public comment to strengthen oversight. The draft Forward Contracts (Regulation) (Intermediaries) Rules, 2014 propose to empower the Forward Markets Commission with explicit supervisory authority over intermediaries in commodity derivative markets, and the Central Government has published the draft on the Ministry of Finance website inviting public comments to a designated departmental official within a specified response period.