The government, as an interim measure, may hand over the regulation of spot exchanges to stock market regulator Securities and Exchange Board of India (Sebi) in the aftermath of the controversy surrounding the National Spot Exchange.In a sense, the government may move to the pre-2004 period, when the Wajahat Habibullah committee had recommended putting commodity exchanges under Sebi on the premise that the products being offered on various spot exchanges were really complex financial products.A senior government official told FE that internal discussions within the government have already begun to revive a proposal for handing over the regulation of spot exchanges to Sebi till the time the new financial sector regulatory set up recommended by the Financial Sector Legislative Reforms Commission (FSLRC) is put in place. He added the proposal to bring in Sebi would require cabinet clearance, which was likely to be taken in due course.
Source : Financial Express
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