The Securities and Exchange Board of India (SEBI) has prescribed warehousing norms for agricultural commodities and is in process of doing the same for the non-agri commodities, said Mr P. K. Bindlish, CGM and HOD-Commodity Derivatives Market Regulation Department (CDMRD), SEBI, said at an ASSOCHAM event held in New Delhi recently.
SEBI has taken a number of steps in this direction for more participants and for more awareness programme in commodity derivatives and risk management. It has started a system of commodity trainers’ concept to train them and will continue with its endeavour to develop the commodity derivatives market, said Mr Bindlish while inaugurating the ASSOCHAM’s 16th Commodity Futures Market Summit.
The objectives of commodity derivatives and other derivatives, i.e., hedging and price discovery, as well as in trade practices and mechanisms, and with a view to usher in the next wave of reforms in the commodity derivatives market, the government of India merged the erstwhile FMC with SEBI in order to bring convergence of the two markets, said the SEBI official.
Commodity futures trading can help double farmer’s income by 2022, said Mr C. R. Chaudhary, Minister of State for Consumer Affairs, Food and Public Distribution. Mr Shashank Saksena, Advisor (CM), Department of Economic Affairs, Ministry of Finance, said regulators, policymakers and other stakeholders need to look at integrating the spot market with the derivatives market, said a release.