The inter-ministerial task force on convergence of securities and commodity derivative markets has recommended that securities brokers should be permitted to trade in the commodity derivatives market.

The body made other recommendations too, like inducting the secretary, consumer affairs, in the high-level coordination committee on capital markets, besides having a representative of the department of consumer affairs on the board of Sebi.

It felt the Forwards Market Commission should be a part of Sebi without any change of its organisational structure.

As an alternative, task force is also considering the option to strengthen and restructure FMC and inducting representatives of FMC on the board of Sebi and vice-versa.

The task force has invited suggestions from stakeholders in the commodities sector. The body will submit its final report after holding parleys on September 2 at the annual national conference of commodities exchanges.

The task force has stated in its draft report that inducting secretary, consumer affairs ministry, was important not only for the sake of convergence of markets but also to represent the interest of consumers and investors.

The Ramamoorthy committee set up by Sebi had earlier suggested that securities brokers should be permitted to trade in commodity derivative markets by setting up separate a legal entity and by complying with regulations and norms governing the commodity derivatives sector.

This was considered necessary to ensure that risks in one market did not spill over to other markets as the two markets were regulated by two different entities.

On the issue of convergence at the level of regulators, the task force suggested FMC should be a part of Sebi with its organisational structure intact, with a representative of the department of consumer affairs on the board of Sebi.

The task force suggested an alternative model as well, in which FMC would be strengthened, with FMC nominees on the board of Sebi and vice-versa. The draft report of the task force was on its website now.

Globoil meet next month

The seventh session of Globoil India, the international conference and exhibition on vegetable oil, feed and feed ingredients, oilseeds, related industries and services, will be held in Mumbai on 21 and 22 September.

An interactive session on 'Futures & options' relating to commodity trading and presentations by leading commodity exchanges will be part of the agenda.

Solvent Extractors' Association of India and Indian Vegetable Oil Processors' Association were the chief sponsors, with more than 500 delegates including 100 foreign delegates participating.

Delegates making presentations would include Adi Godrej of the Godrej group, Raghu Mody of Rasoi, Utpal Sen Gupta of Agrotech Foods, Thomas Mielke, editor-in-chief of Oil World and John C. Baize of John C. Baize & Associates, USA.