Press Trust of India
Mumbai: Setting September 28 as the date for merger of Forward Markets Commission (FMC) with itself, Sebi Monday announced new norms for commodities derivatives market under which exchanges and brokers in this segment will need to comply with rules applicable to their stock market peers. The new regulations will also come into force on September 28, the date from which Sebi would begin regulating the commodity derivatives market as a unified regulator. These norms, approved by Sebi’s board here Monday, will enable functioning of the commodities derivatives market and its brokers under Sebi norms and integration of commodities derivatives and securities trading in an orderly manner. Sebi said the new regulations provide for compliance of Securities Contracts Regulation (Stock Exchanges and Clearing Corporations) Regulations, 2012, which are currently required to be complied with by stock exchanges. The major compliances include norms related to net worth, shareholding norms, composition of board, corporatisation and demutualisation and setting up of various committees, turnover, infrastructure etc. To ensure non-disruptive transition, Sebi has prescribed specific timelines for aligning different provisions of the SECC Regulations. The corporatisation and demutualisation of regional commodity derivatives exchanges would need to be done within three years from the date of FMC’s merger with Sebi. For availing services of a clearing corporation also, Sebi has set a timeline of three years. Till then, clearing may continue with the current arrangement. However, the commodity exchanges would need to ensure guarantee for the settlement of trades.
