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November 13 deadline for PXIL on net worth requirement

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Sanjay Jog Mumbai
Last Updated : Oct 08 2015 | 12:54 AM IST
The Central Electricity Regulatory Commission (CERC) has asked Power Exchange India Ltd (PXIL) to give an affidavit by November 13 on a proposal to comply with the minimum net worth requirement of Rs 25 crore. No further extension on this count would be granted.

PXIL has told CERC the decision to infuse more equity will be taken up in the next board meetings of its two promoters, National Stock Exchange and National Commodities and Derivatives Exchange, to be held in October and November.

CERC gave its directive on a petition filed by PXIL for four years to comply with the Rs 25-crore requrement under the CERC regulations of 2010.

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PXIL's daily turnover is two to three million units of the total volume of 80 million units accessible to power exchanges in the country.

M G Raoot, its managing director, told the Business Standard: ''The current regulatory framework puts restrictions on the extent of equity share holding of trading members and other shareholders of the exchange. Also, the definition of net worth under the CERC rules is not aligned with the provisions of the Companies Act. These issues pose a difficulty for the existing shareholders to invest further capital for augmenting the net worth of the exchange. We have brought these issues to the notice of the commission through our petition. However, as directed by the commission, we will file a proposal for enhancement of net worth."

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First Published: Oct 08 2015 | 12:40 AM IST

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