Forward market commission

1. JEENA MARY CHACKO MACFAST

2. Forward Market Commission (FMC) is the chief regulators of forward and future markets in India. It is headquartered in Mumbai Mr.Ramesh Abhishek replaced Mr.B.C.Khatua as the chairman of the commission in 2011

3. HISTORY Established in 1953 under the provision of the forward contract (regulation ) act, it consist of 2 to 4 members, all appointed by the Indian government. Currently the commission allows trading in 21 exchanges in India, of which 5 are national FMC falls under the Ministry of Consumer Affairs, Food and Public Distribution because futures traded in India are traditionally on food commodities

4. RESPONSIBILITIES & FUNCTIONS To advise the central government in respect of the recognition or the withdrawal of recognition from any association To keep forward markets under observation and to take such actions in relation to them, in exercise of the powers assigned to it by or under the act To make recommendations generally with a view to improve the organization and working of forward market .

5. To undertake the inspections of the accounts and other documents of registered association or any member of such association whenever it considers is necessary To collect and publish information regarding the trading condition in respect of goods to which any provision of the act is made applicable including information regarding supply , demand and price, and to submit to the central government.

6. POWERS OF COMMISSION The commission has powers of deemed civil court for Summoning and enforcing the attendance of any person and examining him on oath Requiring the discovery and production of any document Receiving evidence on affidavits Requisitioning any public record from any office

7. REGULATORY MEASURES The Forward Market Commissions prescribe following regulatory measures Limit on net open position as on the close of an individual operator and at member level to prevent excessive speculation. Imposition of margins to prevent defaults by members/ clients Physical delivery of contracts and penalty for default/delivery obligations

8. LEGAL AND REGULATORY PROVISIONS FOR CUSTOMER PROTENTION Forward Markets Commission is persuading increasing number of Exchanges to switch over to electronic trading, clearing and settlement, which is more customer-friendly. Commission has also prescribed simultaneous reporting system for the Exchanges following open out-cry system. These steps facilitate audit trail and make it difficult for the members to indulge in malpractices like, trading ahead of clients, etc.

9. CONT…. The Commission has also mandated all the Exchanges following open outcry system to display at a prominent place in Exchange premises, the name, address, telephone number of the officer of the Commission who can be contacted for any grievance. The website of the Commission also has a provision for the customers to make complaint, send comments and suggestions to the Commission.