Amidst a decline in investor participation and turnover at commodity exchanges, the Forward Markets Commission (FMC) has said that it will bring in changes in existing regulations such as permitting brokers to trade, adding more commodities in the exemption list of commodity transaction tax (CTT) and providing flexible trading limits in a bid to revive investor participation. Ramesh Abhishek, chairman, FMC, while speaking at an Assocham event, exuded confidence that participants will come back in the market through a series of measures and better corporate governance practices. While introduction of CTT has been one of several reasons for the fall in market participation, Abhishek told the market to learn to live with CTT. He, however, added that some changes may be brought in. According to FMC data, the total value of trade in FY14 (till January 15) declined by 37 per cent to Rs 85.28 lakh crore from Rs 136.5 lakh crore in the same period last year. “As of now the guidelines do not allow members of the exchange or brokers to trade even if they have share in some other exchange. We are going to recommend to the government to change it,” said Abhishek.
