| Merger of the Forward Markets Commission (FMC) with the Securities and Exchange Board of India (Sebi) allows a commodity exchange to expand in segments permitted under a stock exchange and vice versa. From the proposed Bill in this regard, “all recognised associations under the Forward Contracts Regulation Act shall be deemed to be recognised stock exchanges under the Securities Contracts Regulation Act”.
Exchanges, stock and commodities, are excited. Says a senior figure in the sector, on condition of anonymity: “After the merger, stock and commodities exchanges, subject to Sebi permission, will have fungibility in penetrating each other’s market segment.” This means a commodity exchange can start currency derivatives and equity trading. A stock exchange can launch commodity trading...............................................Full Article: Source
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