Just as the commodities markets have been hotting up with the introduction of fresh products, there’s also been considerable hustle and bustle at 100, Marine Drive, Mumbai — the headquarters of regulator Forward Markets Commission (FMC).The FMC has suddenly got down to business — it has drafted rules for mandatory registration of intermediaries at commodity exchanges, ordered uniform transaction charges, done away with night trade of agri-commodities and ordered exchanges to install their own ‘‘view-on-terminals’’ at its office.All this in the last couple of weeks.FMC officials, however, see nothing unusual in the sudden spurt of activity. Each of these announcements are in line with its mandate — under the Forward Contracts (Regulation) Act, 1952 — they say.According to V.S. Kolamkar, FMC director, the mandatory registration is aimed to regulate intermediaries (brokers in the futures market) directly. ‘‘Presently, as intermediaries are not required to register with FMC, we’ve been involved in indirect regulation. This would change when the new norms are effected, after receiving public feedback in three months,’’ he said.While the uniform transaction charges are targeted to ensure a level-playing field and the terminals to monitor price movements, Kolamkar said the night trade of agri-commodities have been abolished to take on speculation. ‘‘We’ve been receiving complaints from various parts of the country, especially rural parts, citing price manipulation,’’ he said.Market watchers say a ‘fired-up’ FMC is in sync with changing market dynamics. The Indian commodities market may still be a fledgling one, but action there, is by no means, dreary. If till 2003, a few commodities like jute, black pepper and potato were traded, presently, as many as 80 commodities including coffee, gold and crude have made their way into futures trading.The trading orbit has widened, as Kolamkar says, ‘‘The FMC places no restrictions on the basket of commodities that can be traded.’’The regulator’s manoeuvers seem to have gone down well with most stakeholders. ‘‘The FMC has certainly done a lot of thinking on this issue and kept the interest of the market and its players in mind while taking the decisions. The move on getting registrations of brokers is similar to those we have in the securities market,’’ said Madan Sabnavis, NCDEX chief economist.Adds Sushil Sinha, Manager for Commodities at Geojit Securities, ‘‘There will be transparency in the working of commodities markets and healthy competition among members, if these norms are properly implemented.’’While the market is closely watching and making whatever adjustments that are required with respect to the new norms, trading too has remained unaffected. ‘‘Trading volumes have been stable on the whole and while traders would like to have had extended timings, they are adjusting to the new ones,’’ said Sabanavis.Market watchers say while ‘genuine parties’ think the new norms bode well for the market, it will be the mischief-makers, not surprisingly, making noises. ‘‘Transactions are never easy to track without registration. Speculators and those who wish to avoid the tax net will not welcome the new move,’’ said an analyst, who didn’t want to be named.
