FMC-SEBI Merger To Boost Commodity Market: CPAI
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The Commodity Participants Association of India (CPAI) says that the proposed merger of the Forward Markets Commission (FMC) with the Securities and Exchange Board of India (SEBI) will boost the prospects of commodity market in India.
“Commodity volume will rise after the merger and India can be a commodity hub,” V.D. Aggarwal, founder president of CPAI said on May 30. He was speaking at CPAI’s fourth international conference in the capital.
The merger of two regulators was proposed by the finance minister as part of the Budget. The government is already in the process of finalising the formalities for the merger of commodity derivatives market regulator FMC and SEBI by September. Last month the FMC authorities met representative of three leading commodity exchanges MCX, NCDEX and NMCE and asked them to complete pending work relating to auditing of members and other procedures.
"Consumers, traders and brokers will also benefit in this process and it also will play a role in ‘Make in India’," Aggarwal said.
The CPAI has emerged as the only registered member organization of all the commodity brokers of national commodities exchanges, recognized by the FMC as the "voice of commodity futures market and its participants".
The association reaches out to all the participants of commodity futures market and involve them in the growth and development of the commodity market to fulfil its mission of “Transforming Rural Economy Into Global”.
The CPAI wants to develop sound business practices, maintain an ethical code of conduct and help implement standard principles for commodity broking activities. It hopes to play the role of an intermediary between government, regulators and members in the interest of industry as a whole.
At present, more than 2,000 commodity brokers with their reach in more than 1,000 towns and cities of India serve agricultural producers, consumers and market participants through 200,000 online terminals.
Coal minister Piyush Goyal, who attended the event, described the one year of NDA government as a systematic approach towards sustainable development.
He said, “The prime minister doesn’t believe in quick-fix populist measures and was laying a foundation stone for strong India.”
He said the world is looking towards India as a safe destination for investors, businessman and tourists.