MUMBAI: The commodity markets regulator, the Forward Markets Commission, has asked Indiabulls Financial Services to reduce its stake in the proposed national commodity exchange to 40% within a month to meet regulatory requirements.
The consumer affairs ministry had recently given an in-principle approval to the proposal of Indiabulls and MMTC to set up the country’s fourth national-level commodity exchange. In the new exchange, Indiabulls was to hold 74%, with MMTC holding the rest.
However, in May this year, the regulator came out with guidelines for setting up commodity exchanges and according to these guidelines, a single shareholder cannot hold more than 40% stake.
“No single entity can hold more than 40% stake in a commodity exchange. We have given Indiabulls a period of one month to reduce their stake in proposed exchange,”
FMC chairman BC Khatua said on the sidelines of an event organised by Multi Commodity Exchange (MCX) on Friday. Mr Khatua said Indiabulls may have to look for one or more partners to sell their stake.
The consumer affairs ministry had recently given an in-principle approval to the proposal of Indiabulls and MMTC to set up the country’s fourth national-level commodity exchange. In the new exchange, Indiabulls was to hold 74%, with MMTC holding the rest.
However, in May this year, the regulator came out with guidelines for setting up commodity exchanges and according to these guidelines, a single shareholder cannot hold more than 40% stake.
“No single entity can hold more than 40% stake in a commodity exchange. We have given Indiabulls a period of one month to reduce their stake in proposed exchange,”
FMC chairman BC Khatua said on the sidelines of an event organised by Multi Commodity Exchange (MCX) on Friday. Mr Khatua said Indiabulls may have to look for one or more partners to sell their stake.
1 comment:
Do Indiabulls have to surrender their membership of MCX and NCDEX after having their own Nation level exchange ???
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