 "Govt might alter shareholding norms for comexes")
The government is considering a change in the equity holding norms for commodity exchanges, said a source. The intention is to attract more capital and align norms with those the securities market’s.
There is a proposal to cap a private corporate body’s investment in a commodity exchange at 15 per cent, while removing several caps within the overall ceiling for public-sector companies and cooperatives. Till recently, the commodity futures market was under the ministry of consumer affairs. It is now under the ministry of finance and there was a proposal to converge the equity holding norms of commodity and stock exchanges. As part of this, there is a proposal 51 per cent in a comex be held by the public. Also, a stock exchange cannot hold more than five per cent in a comex; this could be changed. An overall 15 per cent ceiling might be made applicable to all categories of investors. Ceilings for public sector units and cooperatives might also go. In the earlier norms for holding a stake in a comex, the mandate was there be an anchor investor to draw a growth path and lead it. The limit for an anchor investor was fixed at 26 per cent for the first five years. There is no new decision yet on whether there is a need for anchor investors.
There is a proposal to cap a private corporate body’s investment in a commodity exchange at 15 per cent, while removing several caps within the overall ceiling for public-sector companies and cooperatives. Till recently, the commodity futures market was under the ministry of consumer affairs. It is now under the ministry of finance and there was a proposal to converge the equity holding norms of commodity and stock exchanges. As part of this, there is a proposal 51 per cent in a comex be held by the public. Also, a stock exchange cannot hold more than five per cent in a comex; this could be changed. An overall 15 per cent ceiling might be made applicable to all categories of investors. Ceilings for public sector units and cooperatives might also go. In the earlier norms for holding a stake in a comex, the mandate was there be an anchor investor to draw a growth path and lead it. The limit for an anchor investor was fixed at 26 per cent for the first five years. There is no new decision yet on whether there is a need for anchor investors.