FMC includes Sebi, BSE members in risk management group
17 Sep 2013 10:14 PM GMT
The Forward Markets Commission (FMC) on Monday widened the Risk Management Group to include a member each from Sebi, BSE and IFFCO, among others, as it tackles the growing challenges of risks associated with commodity futures trading after the NSEL crisis.
The Risk Management Group (RMG) was set up in February 2005 to assist the FMC in formulating risk management policies and guidelines for the commodities derivatives market. The group was last reconstituted in March 2007.
'In view of the challenges being faced by the commodity futures markets with regard to risks associated with domestic and global issues, a need has been felt to reconstitute and widen the RMG by including members from various stakeholders,' the FMC said in an order.
The 11-member group will be headed by J R Verma of the Indian Institute of Management, Ahmedabad. Members include a representative from the Securities and Exchange Board of India, Bombay Stock Exchange CEO Nehal Vora, fertiliser cooperative IFFCO joint MD and CFO Rakesh Kapur and HSBC India managing director Sunil Sanghai.
The other six members are from national commodity bourses -- MCX, NCDEX, NMCE, ICEX, ACE and UCX. The convenor of the RMG will be a director from the FMC.
The regulator said the group may co-opt any other member from time to time considering his/her knowledge, expertise and experience in the field of risk management.
The Risk Management Group (RMG) was set up in February 2005 to assist the FMC in formulating risk management policies and guidelines for the commodities derivatives market. The group was last reconstituted in March 2007.
'In view of the challenges being faced by the commodity futures markets with regard to risks associated with domestic and global issues, a need has been felt to reconstitute and widen the RMG by including members from various stakeholders,' the FMC said in an order.
The 11-member group will be headed by J R Verma of the Indian Institute of Management, Ahmedabad. Members include a representative from the Securities and Exchange Board of India, Bombay Stock Exchange CEO Nehal Vora, fertiliser cooperative IFFCO joint MD and CFO Rakesh Kapur and HSBC India managing director Sunil Sanghai.
The other six members are from national commodity bourses -- MCX, NCDEX, NMCE, ICEX, ACE and UCX. The convenor of the RMG will be a director from the FMC.
The regulator said the group may co-opt any other member from time to time considering his/her knowledge, expertise and experience in the field of risk management.
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