Tuesday, 11 November 2014

No Stock Limits To Help India Commodity Futures

In a significant move that could help country’s commodity futures market players, the Indian government has exempted commodities kept in regulated warehouses from the purview of stock limits imposed by state governments to curb hoarding under the Essential Commodities Act.

This was one of the key reforms that commodity markets regulator Forward Markets Commission (FMC) was pushing with the Consumer Affairs Ministry for last few years.

The exemption has been given subject to the condition that these warehouses publish the information of stock available with them on a real time basis, it said.

The Department of Consumer Affairs has also issued an advisory to all the state governments in this regard and asked the commodity exchanges to inform all market participants about the development.

Currently, there are four national and six regional level commodity exchanges in the country.



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