What is statutory framework to regulate commodity futures in India?
Commodity futures contracts and the commodity exchanges are regulated by the government under the Forward Contracts (Regulation) Act, 1952. The nodal agency to regulate the future market is the Forward Markets Commission, situated at Mumbai, which functions under the aegis of the ministry of consumer affairs. What is a ‘Commodity’? A commodity includes all kinds of goods. FCRA defines “goods” as “every kind of movable property other than actionable claims, money and securities”. Futures’ trading is organized in such goods or commodities as are permitted by the government. At present, all goods and products of agricultural (including plantation), mineral and fossil origin are allowed for futures trading under the auspices of the commodity exchanges recognized under the FCRA. What is a Commodity Exchange? A commodity exchange is an association, or a company or any other body corporate organizing futures trading in commodities. What is the meaning of Futures Contract? A futures contract i
