The government has liberalised party-to-party contract trading in 39 commodities by removing them from the purview of the Forward Contracts Regulation Act, 1952.
The commodities include wheat, rice or paddy, gram, jowar, bajra, maize, ragi, small millets, tur, urad, moong, masur, linseed, linseed oil and oilcakes, imported art silk yarn, methi, coriander seed, gold, silver, silver coins, gur, kapas, etc.
The step has been taken to promote smooth trading in commodities that were hitherto included under Sections 17 and 18 of the Forward Contracts (Regulation) Act, 1952.
Accordingly, the government in consultation with the Forward Markets Commission has exempted all non-transferable specific delivery contracts in these commodities from the purview of the Forward Markets Commission Act with effect from May 27, 2003.
In August 2002, the government had exempted trading in jute, cotton and edible oil from the purview of the Forward Contracts Regulation Act 1952.
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