| A Finance Ministry-appointed committee has recommended allowing banks and foreign institutional investors in the commodity futures market. The committee’s recommendations intend mainly to facilitate frictionless arbitrage between the spot and futures market. This is key to fulfilling the objectives of price discovery and hedging and greater hedger participation in the market, the committee said.
The committee was set up after the commodity derivative market and its regulator, Forward Market Commission, were transferred to the Finance Ministry in September 2013 from the Consumer Affairs Ministry in the wake of the ?5,600-crore NSEL scam.............................................Full Article: Source
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