Forward Market Commission Case Study

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Forward market commission Forward Markets Commission (FMC) headquartered at Mumbai, is a regulatory authority which is overseen by the Ministry of Finance and Department of Economic Affairs, Govt. of India. It is a statutory body set up in 1953 under the Forward Contracts (Regulation) Act, 1952. The Forward Markets Commission is a regulatory body for commodity markets in India. Inherent objective is to achieve price stability by means of price discovery and risk management. The Commission also collects information regarding the trading conditions in respect of goods to which any of provisions of Act is made applicable. It also advises Central Government regarding recognition of associations. Functions of Forward market commission of India…show more content…
And publish information whenever the Commission thinks it necessary, It also performs the task of submitting to the Central Government periodical reports on the operation of this Act and on the working of forward markets relating to such goods. 4) To make recommendations generally with a view to improving the organization and working of forward markets 5) To undertake the inspection of the accounts and other documents of [ any recognized association or registered association or any member of such association] whenever it considers it necessary. 6) To perform such specified duties and exercise assigned powers by the “Forward Contract Regulation Act”. Powers of Forward market commission 1) The Commission shall, in the performance of its functions, have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in respect of the following matters, namely: a. Summoning and enforcing the attendance of any person and examining him on oath. b. Requiring the discovery and production of any document. c. Receiving evidence on affidavits. d. Requisitioning any public record or copy thereof from any office. e. Any other matters which may be…show more content…
193 and 228 of the Indian Penal Code, 1860. Structure of Forward market commission In the forward market commission act, the structure of the commission is given as follows: 1) The Commission shall consist of not less than two, [but not exceeding four] members appointed by the Central Government. It is expected that one of them should be nominated by the Central Government to be the Chairman, and the other members should be either whole-time or part- time as the Central Government may direct. 2) No member of the Commission should have undue benefits from the decisions, policies regulated by the commission. In case of any such financial or other interests the members should notify the central government when asked to do so. 3) No member of the Commission shall hold office for a period of more than three years from the date of his appointment, and a member relinquishing his office on the expiry of his term shall be eligible for re-appointment. Three-tier regulatory

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