Indian Commodity Exchange launch extended by a month.
The Indian Commodity Exchange (ICE), promoted by Indiabulls Financial Services and state-run MMTC, has completed the 10 per cent stake sale it had earlier proposed to United Stock Exchange of India (USE).
The commodity exchange has today signed deals with IDFC and Krishak Bharati Cooperative Limited (KRIBHCO) for the sale of 5 per cent stake each. Forward Markets Commission (FMC), the commodity markets regulator, had rejected the stake sale to USE, ICE Managing Director Ajit Mittal said.
“Now, we will submit these details to FMC and hopefully get recognition,” Mittal said. The exchange is planning to begin trading in commodities in mid-October as against mid-September earlier due to the delay in regulatory approval.
In August, FMC had directed the exchange, which had received recognition from the Ministry of Commerce over a year ago, to offer 10 per cent equity of USE to other competent partners and re-submit the application by September-end.
Meanwhile, the exchange has also applied for permission from FMC for the launch of both industrial and agricultural commodities including gold, natural gas, crude oil, nickel, silver, soy oil, turmeric etc. The exchange is expecting regulator’s clearance in a couple of days.
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Initially, ICE was floated under the name of International Multi-Commodities Exchange as a joint venture between Indiabulls and MMTC, sharing the equity stake of 74 per cent and 26 per cent respectively.
Hence, Indiabulls had to dilute its stake after FMC revised guidelines for setting up a national level commodity exchange allowing a single investors not more than 40 per cent.
So far, Indiabulls has diluted 24 per cent stake to HDFC Bank, Yes Bank and Indian Potash Ltd.