In India, which of the following is regulated by the Forward Markets Commission?
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UPSC Civil Services preparation
- ACurrency Futures Trading
- BCommodities Futures TradingCorrect
- CEquity Futures Trading
- DBoth Commodities Futures and Financial Futures Trading
Explanation
The correct answer is B because the Forward Markets Commission was the chief regulator for commodities futures trading in India. Established under the Forward Contracts Regulation Act of 1952, its primary role was to oversee and regulate trade in agricultural and non-agricultural commodity derivatives.
In contrast, currency and equity futures trading are financial derivatives regulated by the Securities and Exchange Board of India. In 2015, the Forward Markets Commission was merged with the Securities and Exchange Board of India to streamline the regulation of all derivative markets under a single unified body. Therefore, historically and specifically, the commission was responsible only for commodities.
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