FMC wants listed companies to disclose commodities hedging
8 July 2013 10:01 PM GMT
Commodity markets regulator FMC on Sunday said that it will soon discuss with the Securities and Exchange Board of India (Sebi) the possibility of making it mandatory for listed companies to disclose their exposure in commodities hedging.
The companies hedge in commodities to offset risks arising out of fluctuations in raw-material prices.
'We will soon write to Sebi on this issue. In fact, this was the recommendation of our Sub-committee,' Forward Markets Commission's Ramesh Abhishek said.
The committee had suggested that listed firms should disclose their exposure in commodities hedging saying such information will benefit both the companies and the commodity market, he said.
Currently hedging in Indian commodity bourses is taking place on a very small scale with scope for development. Efforts are being made to create awareness about its advantages, the regulator added.
The companies hedge in commodities to offset risks arising out of fluctuations in raw-material prices.
'We will soon write to Sebi on this issue. In fact, this was the recommendation of our Sub-committee,' Forward Markets Commission's Ramesh Abhishek said.
The committee had suggested that listed firms should disclose their exposure in commodities hedging saying such information will benefit both the companies and the commodity market, he said.
Currently hedging in Indian commodity bourses is taking place on a very small scale with scope for development. Efforts are being made to create awareness about its advantages, the regulator added.
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