In exercise of powers conferred by Sections 131 and 133 of the Finance Act, 2015 (20 of 2015), the Central government hereby appoints the 28th Day of September, 2015 as the date on which the provisions of Part I (excluding Section 132) and Part II of Chapter VIII of the said Act shall come into force. A notification to this effect was issued on 28th August, 2015.As a result, Forward Contracts Regulation Act (FCRA) 1952 gets repealed and Regulation of Commodity Derivatives Market will shift to Securities and Exchange Board of India (SEBI) under Securities Contracts Regulation Act (SCRA) 1956 with effect from 28th September, 2015.

This action has been taken in order to comply with the announcement made by the Union Finance Minister Shri Arun Jaitley during his Budget Speech while presenting the General Budget 2015-16. The Finance Minister had proposed to merge the Forwards Markets Commission (FMC) with SEBI to strengthen the regulation of Commodity Forward Markets. Enabling legislation, amending the Securities Contracts Regulation Act (SCRA) 1956 and FCRA 1952 were proposed in the Finance Act, 2015.

Repeal of FCRA transfers regulation of commodity derivatives to securities market regulator, consolidating oversight after statutory amendments. Repeal of the Forward Contracts (Regulation) Act, 1952 and transfer of regulation of commodity derivatives to the securities market regulatory regime are implemented under powers conferred by the Finance Act, 2015, following enabling amendments to the Securities Contracts (Regulation) Act, 1956 and related provisions to consolidate oversight of commodity forward markets.