Weekly Current Affairs

Sebi faces ‘complex challenges’ in regulating commodity markets: Sinha [Economy]

  • The Securities and Exchange Board of India (Sebi) faces “many complex challenges” in regulating the commodity markets.
  • These challenges emanate from underlying markets, which are “fragmented, dispersed and not under its regulatory purview”.
  • Commodity derivative market has come under Sebi’s purview since Sep, 2015 after merger of erstwhile Forward Markets Commission with Sebi.
  • Sebi’s aim is to bring the commodities derivatives market at par with securities market in all aspects.
  • Sebi endeavours towards reshaping and refining commodities derivatives market regulations, strengthening its risk management framework, aligning existing market participants to a uniform regulatory framework, boosting the surveillance mechanisms at exchanges.
  • In the years to come, Sebi’s vision is to evolve the commodity market with new products and new categories of participants leading to better liquidity, thus facilitating fair price discovery for the benefit of stakeholders.