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    Question

    id="docs-internal-guid-6d5a45f4-d4b1-d886-d069-d1013b4b7433" >Which of the following is NOT the benefit of merger of FMC with SEBI?
    A It will improve the surveillance and risk-monitoring in the market Correct Answer Incorrect Answer
    B SEBI’s control over brokers will make the commodity trading market better regulated Correct Answer Incorrect Answer
    C SBI will use stronger FCRA than SCRA Correct Answer Incorrect Answer
    D SEBI will oversee the price determination and the price discovery will improve in commodities trading Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    The Forward Contracts Regulation Act (FCRA) stands repealed, and the regulation of the commodity derivatives market shifts to Sebi under the Securities Contracts Regulation Act (SCRA), 1956. SCRA is a stronger law, and gives more powers to Sebi than FCRA offered to FMC

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