 "ICEX decides not to launch fresh contracts until situation improves")
Indian Commodity Exchange (ICEX), the country’s fourth-largest commodity exchange, has decided not to launch fresh contracts in the wake of the ongoing weak sentiment in commodity futures market.
Confirming the development, a senior ICEX official said: “Looking at the current poor sentiment in the commodity futures market, arisen out of the Rs 5,600-crore payment crisis at National Spot Exchange Ltd (NSEL), we have decided to keep new contract launches in the backburner.”
ICEX has two anchor investors — state-owned MMTC Ltd and R Money, a Reliance ADAG company — with 26 per cent stake each. The other major shareholders of the exchange include Indian Potash and Kribhco with 10 per cent and five per cent of stake, respectively. After selling 26 per cent stake to R Money in 2010, Indiabulls currently holds 14 per cent stake in the exchange with one board seat. IDFC also holds a five per cent stake in ICEX.
When contacted, Sam Ghosh, CEO of Reliance Capital, refused to comment. MMTC and other shareholders could not be reached. The exchange currently offers trading in castor seed, mustard seed, crude oil, copper, gold and iron ore, among others.
Confirming the development, a senior ICEX official said: “Looking at the current poor sentiment in the commodity futures market, arisen out of the Rs 5,600-crore payment crisis at National Spot Exchange Ltd (NSEL), we have decided to keep new contract launches in the backburner.”
ICEX has two anchor investors — state-owned MMTC Ltd and R Money, a Reliance ADAG company — with 26 per cent stake each. The other major shareholders of the exchange include Indian Potash and Kribhco with 10 per cent and five per cent of stake, respectively. After selling 26 per cent stake to R Money in 2010, Indiabulls currently holds 14 per cent stake in the exchange with one board seat. IDFC also holds a five per cent stake in ICEX.
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ICEX’s turnover fell 30.16 per cent to Rs 63,579 crore in the first nine months of the current financial year, compared to Rs 91,034 crore in the year-ago period. “Till sanity is restored in the commodity futures market, we will not launch new contracts, while the existing contracts will expire as per the schedule,” said the official quoted above.
When contacted, Sam Ghosh, CEO of Reliance Capital, refused to comment. MMTC and other shareholders could not be reached. The exchange currently offers trading in castor seed, mustard seed, crude oil, copper, gold and iron ore, among others.