BSE to pick up 26% pie in NMCE

The Bombay Stock Exchange is set to pick up 26 per cent stake in India's first demutualised online multi commodity exchange the National Multi-Commodity Exchange.

The Forward Markets Commission said that the apex commodities regulator is likely to take a decision on the BSE proposal soon.

"It should not take much time, may be by next week we can take a decision," FMC member Kewal Ram told reporters.

If BSE is allowed to buy 26 per cent stake, it would be highest by a stock exchange in any Indian commodity exchange.

According to the proposal, the BSE has agreed to buy 26 per cent stake in the Ahmedabad-based NMCE; but the proposal has been waiting for the approval from FMC. The proposal is in the nature of a strategic relation and not a buyout.

The tie-up will immensely help NMCE to leverage on the large network of BSE.

Last year, FMC had asked all agri-commodity exchanges to maintain status quo in their shareholding pattern till guidelines were issued.

The decision came after foreign firms Goldman Sachs and Fidelity bought stakes in two other Indian commodity exchanges--Multi Commodity Exchange and National Commodity and Derivatives Exchange. NCDEX has been promoted by the National Stock Exchange.

NMCE is promoted among others, by the Central Warehousing Corporation, Neptune Overseas Ltd - a government recognised export house, and Punjab National Bank. Pepper, rubber and cardamom are the main commodities traded on the commodity exchange.