Mumbai: The government proposes to bring new legislation to strengthen commodity markets regulator, the Forward Markets Commission, to make it fully independent and arm it with punitive powers.

The FMC, which is currently under the administrative control of the consumer affairs ministry, needs government permission for many of its decisions.

The centre may soon come out with an ordinance to amend the Forward Contracts (Regulation) Act to give autonomy to the Forward Markets Commission.

"The issue is likely to come up before the Cabinet on January 24," minister of state for food processing industries Subodh Kant Sahai told reporters on the sidelines of a conference on futures trading organised by Assocham.

FMC chairman BC Khatua said the move, if approved, would give the much-needed freedom to the regulator, which is currently attached to the government.

The proposed amendment in FCRA will empower FMC to decide on its own listing and de-listing of commodity bourses, give permission to exchanges to start option trading and other regulatory issues.