Indian demat account holders with commodity futures brokers will now be able to trade on commodity spot exchanges, Economic Times reports. The provision requires that brokers maintain separate ledger accounts for clients in one or the other market, issue separate contract notes and fulfill the capital adequacy and net worth conditions of each exchange. The Consumer Affairs Ministry has recently nominated the Forward Markets Commission (FMC) for supervising spot exchanges whose one-day contracts did not fall under the purview of the Foreign Currency (Regulation) Act, 1952, under which FMC was set up. Previously, electronic spot exchanges were monitored by the Indian government.
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