Forward Markets in India and the Saga of Electricity

Rahul Jajoo, Advocate, Supreme Court of India

Introduction

Forward markets pertaining to commodities in India have been recognized as a way to deal in derivative markets [1] since independence. It was however only in 1952 that the government of India decided to regulate the regime of forward markets and hence, the Forward Contracts Regulation Act, 1952 (“FCRA”) was enacted. The object and purpose of the FCRA was “An Act to provide for the regulation of certain matters relating to forward contracts, the prohibition of options in goods and for matters connected therewith.”

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