| 86. Does a member / broker need to register with the Forward Markets Commission? |
| No; but the Forward Contracts (Regulation) Act, 1952 is proposed to be amended to provide for registration of brokers with the Forward Markets Commission. |
| 87. At what rate does the Forward Markets Commission charge its fee on the turnover of the members/brokers? |
| Forward Market Commission does not charge any regulatory fee from the Exchanges or its members and users. It is an office of the Government of India and sources its finances from the budget. |
| 88. Can a security broker obtain the membership of a Commodity Exchange? |
| The Forward Contracts (Regulation) Act, 1952 does not prohibit security broker from obtaining membership of a Commodity Exchanges. Certain restrictions are however, imposed on a security broker from participating in the Commodity Exchanges under Securities Contracts (Regulation) Rules, 1952. Notification is being/has been issued removing such a restriction. The security broker will however have to set up a subsidiary - a separate legal entity - with separate capital adequacy and minimum networth for being able to trade on a commodity exchange. |
| 89. Can a member enter into the options in goods ? |
| Options in goods are presently prohibited under Section 19 of the Forward Contracts (Regulation) Act, 1952. No exchange or no person - whether he is a member of any recognized association or not - can organize or enter into or make or perform options in goods; it constitutes cognizable offence, which is punishable under section 20(e) of the Act. |