FMC may come under Finance Ministry following NSEL crisis

New Delhi: Amid the deepening of payment crisis at the National Spot Exchange, the government is examining a proposal to bring commodity markets FMC under the purview of the Finance Ministry.

“We have received such a proposal from the Finance Ministry. We are examining it,” a senior Consumer Affairs Ministry official told PTI.

At present, Forward Markets Commission (FMC) is regulated by the Consumer Affairs Ministry.

When contacted, a senior Finance Ministry official said “no decision has been taken yet”.

[caption id=“attachment_1048709” align=“alignright” width=“380”]  Finance Minister P Chidambaram. AFP[/caption]

Finance Ministry oversees the operations of several regulators, including Sebi, Irda and PFRDA.

Bringing FMC under the purview of Finance Ministry will ensure better co-ordination of regulators, officials said.

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The FMC has drawn flak for not being able to ensure smooth functioning of National Spot Exchange Ltd (NSEL).

NSEL had to shut down its operation earlier this month, following the government direction in the wake of violation of certain rules. It has given a seven-month plan to settle Rs 5,600 crore to investors.

The Exchange could settle only Rs 92.12 crore out of the scheduled of Rs 174.72 crore payment it had committed to FMC.

Meanwhile, NSEL today sacked its Managing Director and CEO Anjani Sinha and six other top executives.

PTI