Commodity market regulator the Forward Markets Commission (FMC) today decided to give 3-6 months extension to MCX, NCDEX and NMCE to comply with equity structuring and ownership guidelines.
The deadline to comply with norms for equity restructuring, networth, ownership as per new guidelines, expires today. FMC had set these new norms in July 2009 for over five-year-old commodity exchanges only.
"We have given 3-6 months extension to national commodity exchanges," FMC Chairman B C Khatua told PTI.
The extension has been given on a case to case basis. Three-month extra time has been given to agri-commodity bourse NCDEX, while six-month extension has been given to MCX and NMCE, respectively, he said.
The circular for extending the time limit is likely to be issued soon, he added.
According to new guidelines, commodity bourses have to raise paid up equity capital of minimum Rs 50 crore. The original promoters of the exchange are permitted to hold up to 26 per cent stake in the exchange.
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Besides, a stock exchange can hold only up to 5 per cent stake in a commodity exchange, while a commodity bourse can have equity of up to 15 per cent.
FMC said that NCDEX has completed the stock restructuring formalities and asked more time to raise equity capital to the mandated Rs 50 crore from Rs 37.5 crore.
As regards to the country's largest exchange MCX, it has to reduce the shareholding of its parent Financial Technologies to 26 per cent from the existing 31 per cent. NMCE will have to mop up its equity capital to Rs 50 crore from the existing Rs 17 crore, it added.