Govt defers decision on FCRA Bill

MUMBAI: The FCRA (amendment) Bill, which has been pending for the past 12 years, is unlikely to be passed in the current Parliament session, with the Cabinet on Thursday postponing the discussion on it amid growing opposition to futures trading by several political parties. “The Bill was to be discussed by the Cabinet but we have come to know it has been postponed,” said FMC chairman BC Khatua.

A government official told ET earlier that even if the Bill were to be approved by Cabinet this week, it would be “touch and go” as futures trading had come in for severe criticism by political parties during House debates on price rise. “I have been present in the House and, apart from the Opposition, even some members belonging to the ruling party, seem to enjoy taking credit for banning essential commodities. In the current scenario, even if the Cabinet approves the bill, its fate seems uncertain,” said the official.

Once the Bill is approved by the Cabinet, the official communication can take up to one week to be returned to the concerned ministry. After which the bill is sent to the ministry of law for final touches in terms of drafting and has then to be sent for the President’s approval before it can be tabled in the Parliament.

This takes still more time. The bill is essential for the development of the commodities futures market as it strengthens the regulator by arming it with financial autonomy, facilitates the entry of institutional investors and introduction of new products for trading such as indices and options.

Currently FMC, which oversees 4 national and 17 regional commodity bourses, permits only futures trading in commodities. The regulator is overseen by the Ministry of Consumer Affairs, Food & Public Distribution.