GS PrelimsEconomyFinancial Institutions and Financial markets2010

In India, which of the following is regulated by the Forward Markets Commission ?

A

Currency Futures Trading

B

Commodities Futures Trading

C

Equity Futures Trading

D

Both Commodities Futures and Financial Futures Trading

Correct Answer: Option B

Explanation

1. The question asks what is regulated by the Forward Markets Commission (FMC) in India (Note: FMC was merged with SEBI in 2015, but the question refers to its historical role). 2. The Forward Markets Commission was the chief regulator of the commodity futures markets in India. 3. Option (A) Currency Futures Trading: This is regulated by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). 4. Option (B) Commodities Futures Trading: This was the specific domain regulated by the FMC. 5. Option (C) Equity Futures Trading: This falls under the regulation of SEBI. 6. Option (D) Financial Futures Trading (which includes currency and equity futures) is primarily regulated by SEBI and RBI, not FMC. 7. Therefore, the Forward Markets Commission regulated Commodities Futures Trading.

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