The market regulator won’t rush in to allow unified commodity and stock exchanges. It will first release a consultation paper before moving in that direction, said SK Mohanty, executive director of the Securities and Exchange Board of India.
“The debate is under deliberation when it should be done,” Mohanty said.
The Forward Markets Commission, which regulated the commodity derivatives market, was merged with SEBI in 2015, allowing commodity bourses to become deemed stock exchanges. This prompted agents and brokers to urge the regulator to allow unified exchanges as stock and commodity derivatives are under its purview.
SEBI had indicated that it would require up to three years to move towards unified exchanges, that too in a gradual manner. Last week, it brought out regulations for integrated brokers, those having different licences for stock and commodity exchanges, allowing them to consolidate their operations under a unified licence.
As caried in BQ