FCRA bill will push commodity market reforms: MCX

MUMBAI: The clearance of Forward Contracts Regulation Act (Amendment) Bill 2010 by the Union cabinet today is a boost for the much-needed policy reforms in the Indian commodity market, MCX MD and CEO Shreekant Javalgekar said in a statement here.

Javalgekar said the bill, once passed, will bring the Indian commodity trade on par with global practices.

The amended FCRA will not only strengthen the Indian commodity market regulator, but also pave the way for introduction of new tools for hedging and price risk management, facilitate better price discovery, and create Indian benchmark prices for commodities which are widely produced or consumed in India, he added.

New hedging tools such as options and indices, besides new intangible products, which are needed by the Indian commodity market participants, can now be introduced, he said. "We welcome this decision and expect an early passage and implementation of the FCRA Amendment Bill," Javalgekar said.