The awareness of the subject of forward markets in commodities is rather low. Forward Markets Commission has been conducting a large number of training programmes, seminars and workshops on this subject. Such programmes have been conducted for the members/ office-bearers of the existing associations for introducing the best international systems and practices in Indian derivatives markets. Training programmes have been conducted for police officers and judicial magistrates for apprising them about the legal provision of the Act, so that they can detect incriminating evidence in the documents seized from illegal markets. Misconceptions about the role of forward markets and speculation are also widespread among the policy makers. A number of seminars and workshops were also organized for policy makers to dispel some of the popular misconceptions. "101 Frequently Asked Questions" is a compilation of commonly raised queries and doubts during such training and awareness raising programmes, seminars and workshops organized for different audiences. An attempt has been made to include the most nagging questions and to answer them in a common man's language. Concepts, facts and issues relating to derivatives market are sought to be classified under different heads for ease of reference. Commission is optimistic that this document will achieve its objective of creating awareness and dispelling misconceptions about the derivatives markets in commodities

                     This is a maiden attempt and though ample care has been taken to include all the important questions and to provide answers, which are technically and legally correct, it is likely that there could be some inaccuracies and incompleteness. This may, therefore not be treated as a legal document, and views expressed in it may not be considered official views of the Commission.

                     A proper description, which does not change over time, about the derivatives market, is that this market is changing all the time. The changes have been dramatic since 1980s. The derivative products, the trading, clearing and settlement systems, governing structures are evolving and changing. Though the regulators and policy makers introduce some of the changes pro-actively, most changes are driven by the explicit and implicit needs of the market itself. The FAQ on derivatives markets therefore has to be an evolving document; for this, the comments, suggestions and criticism of its readers are critical. The present compilation reflects the commodity derivatives in India as on August, 2003. Shri D.S. Kolamkar, Director, Shri Anupam Mishra, Deputy Director and Shri D.N. Bagali, Senior Research Assistant have put in stupendous efforts to bring it out in such a short period. The advise and experience of Smt. Padma Swaminathan, Member, and Smt. Anandi Ravichandran, Director, has been of great value. They deserve my commendation. The Commission would welcome from readers any comment, suggestions and criticism for its further improvement and updating.