Cabinet nod for FCRA bill likely today

NEW DELHI: The Union Cabinet may approve the Forward Contract Regulation Act (FCRA) Amendment Bill on Thursday. The food ministry is likely to present the Bill before the Cabinet for approval. It aims to give more powers to commodity market regulator FMC.

"Once the Bill is cleared, we will try to bring it in the monsoon session of Parliament. We have incorporated the changes in the Bill as suggested by the standing committee," said a food ministry official.

The proposed amendment aims at providing financial autonomy to the regulator but it also empowers the Centre to supersede FMC in certain cases. "If the proposed Bill is passed, the government would be able to issue directions to the regulator on policy matters and use its powers to impose or lift a ban on the trading of certain commodities including food grains based on the market situation," the official said.

The amendments also make provisions for investigation, enforcement and heavy penalty in case of contravention of the provisions of FCRA. "The amended Bill also has a provision to empower commission to levy fees and constitute a general fund of FMC for crediting grants, fees and other monetary gains except penalty. It will be used to meet commission's expenses," the sources said.

The Bill was introduced in the Lok Sabha in December 2010. The Speaker referred it to the parliamentary standing committee on food and consumer affairs. The committee submitted its report in December last year. Since then, the proposed amendments have been vetted by various departments.