Mumbai: Commodities market regulator Forward Markets Commission (FMC) said it will punish those entering in real-time trading by opening terminals of foreign commodity exchanges in India, without prior approval of the government.
would be deemed illegal,” FMC said in a statement here. People entering into such contract would be punished under Section 21 of the Forward Contract (Regulation) or FCR Act, 1952.
The commission said despite the clarifications issued last year, real-time trading in commodity derivatives is being conducted on foreign bourses.
FMC reiterated and clarified that forward contracts, other than those entered between members of recognized association or through or with such members in goods notified under Section 15 of the FCR Act would be considered illegal and void.