Forward Markets Commission

Forward Markets Commission is a statutory body established under the Forward Contract Act
1952. Before September 2013, FMC used to function under the Department of Consumer
Affairs, Ministry of Consumer Affairs, Food and Public Distribution, Govt. of India. Now it
functions under the Department of Economic Affairs, Ministry of Economic Affairs, Ministry
of Finance.
FMC headquarter is in Mumbai and one regional office is at Kolkata. The commission consists
of a chairman and two members. It is organized into five divisions to perform various tasks.
Under Finance Act 2015, FMC ceased to exist and responsibility of regulating commodity
market given to SEBI.
The FMC performs the role of market regulator. After evaluating the market situation and
considering the recommendations made by the Board of Directors of the Commodity
Exchange, the commission approves the rules and regulations of the exchange according with
which trade is conducted.
There are 22 exchanges including six national level exchange, which is recognized for
conducting future or forward trading in India. The major national exchanges are as follows:
1. Multi-commodity Exchange of India Limited, Mumbai.
2. National Commodity and Derivatives Exchange Limited, Mumbai.
3. National Multi-commodity Exchange of India Limited Ahmedabad.
These online national commodity exchanges organised for conducting forward or futures
trading activities in all commodities in which Forward Contract Act 1952 is applicable. Other
commodities need approval of Forward Markets Commission.
Functions of FMC:
1. To keep forward markets under observation and take action in relation with them.
2. To submit information regarding supply, demand and price, and reports on the forward
markets relating to goods to the Central Government.
3. To make recommendation to improve the organization and working of forward markets.
4. To undertake the inspection of the accounts and documents of any recognized
organization when it is necessary.

http://india.gov.in/sector/consumer_affairs/index.php