Correct Option
The Forward Markets Commission (FMC), established in 1953 under the Forward Contracts (Regulation) Act, 1952, served as the principal regulatory body for commodity futures and forward contracts in India. Its mandate specifically covered futures trading in various commodities, including agricultural products, metals, and energy. At the time the question was posed (2010), the FMC's jurisdiction was distinct from that of financial markets.
Incorrect Options
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Currency futures trading is jointly regulated by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). The FMC had no regulatory role in this segment.
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Equity futures trading falls under the exclusive regulatory purview of the Securities and Exchange Board of India (SEBI). The FMC did not oversee equity markets.
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The Forward Markets Commission (FMC) did not regulate financial futures, such as those in equities or currency. Its regulatory authority was confined to commodity futures, making the assertion of regulating both commodities and financial futures incorrect for the FMC.
Note: In September 2015, the Forward Markets Commission (FMC) was merged with the Securities and Exchange Board of India (SEBI). Consequently, SEBI now regulates commodity derivatives, integrating both commodity and financial futures under a single regulatory framework.