Capital markets regulator Securities and Exchange Board of India (Sebi) on Monday listed September 28 as the date for the merger of the Forward Markets Commission (FMC) with itself, setting in action what Union finance minister Arun Jaitley had announced in the Union budget.
At a board meeting here on Monday, Sebi approved the draft amendment to regulations on the proposed repealing of the Forward Contracts Regulation Act, 1952 (FCRA), making way for the merger.
“These regulations will enable functioning of the commodities derivatives market and its brokers under Sebi norms and integration of commodities derivatives and securities trading in an orderly manner,” said a Sebi statement. The merger is part of the government plan to have unified regulators. The draft regulations contain provisions for compliance of Securities Contracts (Regulation), 2012 which are currently required to be complied by stock exchanges.
MCX and NCDEX welcomed the Sebi’s new norms for commodities derivatives market saying that this will usher in next set of reforms.
Sebi has stipulated that different provisions of the Stock Exchange and Clearing Corporation (SECC) Regulations, specially with regard to corporatisation and demutualisation of regional commodity derivatives exchanges, will be completed within three years from the date of the merger.
Continuing its efforts to tighten noose on tax evaders and black money launderers in stock markets, Sebi said it will consult the government on all necessary steps, including on Participatory Notes, and update the Supreme Court-appointed Special Investigation Team about the safeguards.
Sebi also said sale and purchase of shares under Employee Stock Options Programme (ESOP) will not be considered as ‘trading’ but companies need to comply with disclosure norms in this regard.
Meanwhile, with an aim to boost fund raising through primary markets, Sebi approved relaxed norms for public offers by removing restriction on maximum number of anchor investors.