MUMBAI: Commodity futures markets regulator, Forward Markets Commission (FMC), has said it would seek at least 26% equity in paid up capital by a government company in any proposed national-level exchange.
The FMC said in a notification prescribing guidelines for setting up new commodity exchanges that bourses should be registered as a public limited company with an equity capital of Rs 100 crore.
The notification, posted on FMC web site on Thursday evening, stipulates that institutional shareholders should own at least 20%. Any shareholder having more than 26% stake will have to pare it down to 26% within 2 years beginning with the fourth year of the date of recognition.
Individuals cannot hold more than one per cent of the paid up capital, the notification said. In October, 2007, Indiabulls Financial Services sought FMC’s permission to set up a commodities exchange in partnership with state-run commodities trading company MMTC.
The regulator is yet to grant permission. Indiabulls would hold 74% in a special purpose vehicle (SPV) to set up the exchange and MMTC will hold the rest and two firms would invest a total of Rs 100 crore in equity.
FMC said there is a renewed interest in establishing new national level commodity bourses. Media reports had suggested more Indian companies were planning to set up national level commodity exchanges to grab a pie of the fast growing Indian commodity futures market.
The government, which allowed futures trading in commodities in 2003, has one of the fastest growing commodity futures market with a combined trade turnover Rs 40.7 trillion in FY08.
Meanwhile, commodity bourses have shrugged-off the futures suspension shock to register gains in trade turnover, said a senior official with the FMC. The combined trade of commodity bourses rose 10.2% to Rs 5.1 trillion between April 1 and May 15, over the corresponding period last year, despite a trading suspension on four commodities from May 8.
Food and agriculture minister Sharad Pawar said on Thursday that farmers had not gained from the ban imposed on futures trading in wheat, rice, soya oil, rubber, two varieties of lentils, potato, and chickpea.
The FMC said in a notification prescribing guidelines for setting up new commodity exchanges that bourses should be registered as a public limited company with an equity capital of Rs 100 crore.
The notification, posted on FMC web site on Thursday evening, stipulates that institutional shareholders should own at least 20%. Any shareholder having more than 26% stake will have to pare it down to 26% within 2 years beginning with the fourth year of the date of recognition.
Individuals cannot hold more than one per cent of the paid up capital, the notification said. In October, 2007, Indiabulls Financial Services sought FMC’s permission to set up a commodities exchange in partnership with state-run commodities trading company MMTC.
The regulator is yet to grant permission. Indiabulls would hold 74% in a special purpose vehicle (SPV) to set up the exchange and MMTC will hold the rest and two firms would invest a total of Rs 100 crore in equity.
FMC said there is a renewed interest in establishing new national level commodity bourses. Media reports had suggested more Indian companies were planning to set up national level commodity exchanges to grab a pie of the fast growing Indian commodity futures market.
The government, which allowed futures trading in commodities in 2003, has one of the fastest growing commodity futures market with a combined trade turnover Rs 40.7 trillion in FY08.
Meanwhile, commodity bourses have shrugged-off the futures suspension shock to register gains in trade turnover, said a senior official with the FMC. The combined trade of commodity bourses rose 10.2% to Rs 5.1 trillion between April 1 and May 15, over the corresponding period last year, despite a trading suspension on four commodities from May 8.
Food and agriculture minister Sharad Pawar said on Thursday that farmers had not gained from the ban imposed on futures trading in wheat, rice, soya oil, rubber, two varieties of lentils, potato, and chickpea.
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