SME Times News Bureau | 21 Jul, 2018
regulator SEBI has
prescribed warehousing norms for agricultural commodities and is in
process of doing the same for the non-agri commodities, said P.K.
Bindlish, CGM & HOD-Commodity Derivatives Market Regulation
Department (CDMRD), SEBI, at an ASSOCHAM event held in New Delhi.
has taken a number of steps in this direction for more participants
for more awareness programme in commodity derivatives and risk
has started a system of commodity trainer’s concept to train them
and this training session for commodity trainers will be conducted in
10 days time.
will continue with its endeavour of development of commodity
derivatives market, said Bindlish, while inaugurating an ASSOCHAM
16th Commodity Futures Market Summit.
expert advisory committee constituted to advice on risk management
system. All settlements and cleaning to be handled by cleaning
corporation system. He also said, the two exchanges have submitted
proposals for clearing corporations; one will receive clearance soon,
said that the guideline for foreign entities on hedging activity is
expected to be soon. He further said, all India Consultation to
finalise the guidelines for exchange of mutual funds underway. Any
exchange can provide any product by 1st of October
said, increasing institutional participation in the commodity
derivatives markets. Category III AIFs have already been allowed. He
also said that creating awareness amongst the farmers and FPOs with
help of other institutions like NABARD.
objectives of commodity derivatives and other derivatives, i.e.,
hedging and price discovery, as well as in trade practices and
mechanisms, and with a view to usher in the next wave to reforms in
commodity derivatives market, the government of India merged the
erstwhile FMC with SEBI in order to bring convergence of the two
markets, said SEBI official.
inaugurating Commodity Future event, Mr C.R. Chaudhary, Minister of
State for Consumer Affairs, Food and Public Distribution said,
National Agriculture Markets (e-NAM) will benefit those interested in
commodity futures trading and participants should adhere to set
Minimum Support Price (MSP) on crops, the farmers to get the fixed
MSP in Kharif crops.
commodity future trading can help double farmer’s income by 2022,
said Mr C.R. Chaudhary
Saksena, Advisor (CM), Department of Economic Affairs, Ministry of
Finance said, regulators, policy makers and other stakeholders need
to look at integrating the spot market with the derivatives market.
On the derivatives markets, the SEBI has taken number of steps and
government has also provided policy features to develop these
commodity derivatives markets.
market institution which can provide the post-trading infrastructure
and post-delivery mechanism to facilitate the integration of spot and
derivatives markets which will be challenging, said Saksena.