NEW DELHI: The government is considering the possibility of bringing the Forward Markets Commission (FMC) under thefinance ministry even as the regulator for commodities futures trading struggles to contain the payments crisis at the National Spot Exchange Ltd (NSEL).
The prime minister's office (PMO), which is monitoring the crisis engulfing the exchange, has asked the finance ministry to respond to the suggestion that has often been debated.
"The PMO has suggested to the finance ministry that FMC should be brought under its jurisdiction," a government official in the know told ET. The finance ministry is of the view that if the commodities watchdog, which is currently under the consumer affairs ministry, is brought under its ambit then it should be eventually merged with the Securities and Exchange Board of India (Sebi) as it regulates similar financial products.
The shift could be done through an executive order in the next few days. The PMO has already set up a multiagency task force to investigate the developments at the commodity spot exchange.
North Block, the abode of the finance ministry, has so far stayed clear of the NSEL crisis saying it has no jurisdiction over the matter as the exchange is regulated by the FMC, which comes under the ambit of the consumer affairs ministry.
The idea of merging FMC into Sebi has been discussed earlier as well, but it has not progressed because of differences between parent ministries.
In 2009, the finance ministry had even prepared a note on the modalities but the proposal was shelved after it ran into opposition from the FMC and its administrative ministry.
In October last year, Justice B N Srikrishna-headed Financial Sector Legislative Reforms Commission had recommended that a super regulator should subsume Sebi, IRDA, PFRDA and Forward Markets Commission (FMC). The finance ministry has already accepted the recommendations and is now working out a plan on how the report can be implemented.
The prime minister's office (PMO), which is monitoring the crisis engulfing the exchange, has asked the finance ministry to respond to the suggestion that has often been debated.
"The PMO has suggested to the finance ministry that FMC should be brought under its jurisdiction," a government official in the know told ET. The finance ministry is of the view that if the commodities watchdog, which is currently under the consumer affairs ministry, is brought under its ambit then it should be eventually merged with the Securities and Exchange Board of India (Sebi) as it regulates similar financial products.
The shift could be done through an executive order in the next few days. The PMO has already set up a multiagency task force to investigate the developments at the commodity spot exchange.
North Block, the abode of the finance ministry, has so far stayed clear of the NSEL crisis saying it has no jurisdiction over the matter as the exchange is regulated by the FMC, which comes under the ambit of the consumer affairs ministry.
The idea of merging FMC into Sebi has been discussed earlier as well, but it has not progressed because of differences between parent ministries.
In 2009, the finance ministry had even prepared a note on the modalities but the proposal was shelved after it ran into opposition from the FMC and its administrative ministry.
In October last year, Justice B N Srikrishna-headed Financial Sector Legislative Reforms Commission had recommended that a super regulator should subsume Sebi, IRDA, PFRDA and Forward Markets Commission (FMC). The finance ministry has already accepted the recommendations and is now working out a plan on how the report can be implemented.
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