To give more autonomous authority to the commodity exchanges that deal in futures, the government has cleared a bill to change the existing law and pave way for better commodity trading. The total depth of the market is 77 lakh crore rupees and has two prominent players- MCX and FMC.

The proposal was approved by the Union Cabinet to amend the Forward Contract (Regulation) Act, 1952. If such a thing happens then the status of Forward Markets Commission (FMC) will be enhanced and will become closer to market regulator, SEBI.

The bill is expected to be put on the tables in the upcoming winter session. The measures are also aimed at making a set up which makes the current form of working of the commodity exchanges more transparent and work in a corporate way.

There are 23 commodity exchange working in India. The official spokesman said that options are being given leverage so that the stakeholders, including the farmers, get the benefit out of this.

The cabinet in a statement has said that the Bill provides for provision like IT exemption and also confession power on the Center and states to issue directives to FMC.