Role of FMC
FMC as a sole institution governing the functioning of the commodities market in India executes a plethora of roles. Some of the major roles that the entity performs are henceforth :
1. The Commission counsels the Central Government on matters concerning the recognition or retraction of the previously accorded recognition from any of the association. Additionally, the institution also provides advice on other matters that surface as a result of the administration of the Forward Contracts (Regulation) Act 1952.
2. FMC time and again provides suggestions to uplift the functioning of the organization as well as forward markets.
3. As and when required, the entity holds rights to cross-check and inspect accounts as well as other documents of registered associations as well as their members.
4. The entity also keeps a vigil on the forward commodities market and exercises such assigned discretionary powers that are in the interest and growth of the markets.
5. FMC sources, collects and publishes information concerning trading conditions for different commodities. The details of such information generally comprise demand, supply and price.
As reported by CNBC-TV18, in the National Spot Exchange Limited (NSEL) scam that came to the fore only last month, Forward Markets Commission has uncovered money laundering activities and fraudulent warehouse practices at the crisis-ridden company. The entity also responsible for reporting to other concerned authorities reported to the Enforcement Directorate (ED) about the matter and put forth that the fit and proper standing of NSEL is at risk.
Further, as per Economic Times Report, in order to enhance corporate governance on commodity bourses, FMC has instituted new norms as per which representation of the anchor investor on the commodity bourses shall be in proportion to its shareholding.