Panel to keep eye on commodity markets
Though they couldn’t agree on a common regulator, commodity and equity markets are now under the same policy scanner.
By Nidhi Nath Srinivas, TNN |
NEW DELHI: Though they couldn’t agree on a common regulator, commodity and equity markets are now under the same policy scanner.
To ensure better co-ordination between stock exchanges and commodity markets, the government has set up a committee comprising the RBI, ministry of finance, the two watchdogs — Sebi and Forward Markets Commission, along with the ministry of consumer affairs, and directors from three IIMs.
The committee has been designed on the same lines as the co-ordination committee on financial markets set up by the RBI. The role of the panel on commodity markets would be to facilitate co-ordination of policy and regulatory issues between the two asset classes. The secretary of the consumer affairs ministry would be ex-officio chairman of the committee, while the FMC chairman will be convenor. It will meet once every quarter.
“There could be many issues requiring a consensus. For instance, the role of FIIs in commodity markets or how to detect and deal with traders who have been blacklisted in one market and are now trading on the other. Such kinds of policy decisions can be taken more easily if all the various regulators and decision-makers exchange notes,” officials said.
The ministry of consumer affairs is now in the process of receiving names of the members nominated by each department on the committee. The IIM directors are expected to be from Kolkata, Ahmedabad and Bangalore.
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Commodity exchanges themselves are not members of this committee. Their interaction has been limited to the risk management committee, set under the aegis of the FMC, with an IIM director as chairman, for interacting with the watch dog and the ministry of consumer affairs. Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
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