| In the first ever merger of two regulators, over 60-year-old Forward Markets Commission (FMC) will merge on Monday with the younger but much bigger capital markets watchdog Securities and Exchange Board of India (Sebi) to create a unified regulatory body. Sebi was set up in 1988 as a non-statutory body for regulating the securities markets, while it became an autonomous body in 1992 with fully independent powers.
FMC, on the other hand, has been regulating commodities markets since 1953, but lack of powers has led to wild fluctuations and alleged irregularities remaining untamed in this market segment. The commodities market has been known to be more prone to speculative activities compared to the better-regulated stock market, while illegal activities like “dabba trading” have also been more frequent in this segment...............................................Full Article: Source
|