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What is the present system of regulation in commodity forward/future trading in India?

April 26, 2017commodity forward future India PRESENT regulation system trading

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What is the present system of regulation in commodity forward/future trading in India?

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At present, there are three tiers of regulations of forward/futures trading system exists in India, namely, Government of India, Forward Markets Commission and Commodity Exchanges. The FC(R) Act, 1952 prohibits options in commodities. For the purpose of forward contracts in certain commodities can be regulated by notifying those commodities u/s 15 of the Act; forward trading in certain other commodities can be prohibited by notifying these commodities u/s 17 of the Act.