Forward market commission meaning

Ramesh Abhishek, the recently-appointed chairman of Forward Markets Commission(FMC), has the tough task of heading a regulatory body that has been attempting for years to emerge as an empowered agency with oversight powers like its capital markets counterpart Sebi.

The FMC stands out among other regulators because it reports to a department within the government - the department of consumer affairs in line with the Forward Contracts Regulation Act, And, unlike Sebi, which regulates stock exchanges, the FMC lacks search and seizure powers to combat illegal or dabba trading and can't collect fees and penalties from brokers and recognise or derecognise bourses.

A bill seeking to provide autonomy to FMC has been lying with the department-related standing committee for the past nine months and may not see the light of day anytime soon as the consumer affairs minister's priority lies with pushing through the food security bill.