MCX looks at logistics, warehouse allies

The Multi Commodity Exchange of India (MCX) is looking for equity participation from logistics and warehousing companies along with those into agri production.

Also, a private sector bank is in talks with MCX for picking up equity stake in the commodity exchange.

Jignesh Shah, managing director of Multi Commodity Exchange of India, who was in Ahmedabad on Saturday, said while the exchange is looking at the possibility of having warehousing, logistics and agri processing companies as equity partners, adequate care will be taken to ensure that the stake is not diluted to a great extent.

"However, one of the private sector banks is in talks with MCX for picking up stake," he said.

At present the shareholders of MCX are Financial Technologies (India) Ltd, which holds a 65 per cent stake, along with a consortium of banks, that holds the remaining 35 per cent.

Of the 35 per cent stake, State Bank of India, and its subsidiaries hold 18 per cent, followed by Corporation Bank, Union Bank of India, Bank of India, Canara Bank, Bank of Baroda and Dena Bank.

Stating that 90 per cent of the volume of gold and silver trading in India happens through the MCX, Shah said the exchange has now become the second-largest bourse for silver and the third largest gold futures exchange in the world.

"We are at present dealing in 35 commodities and intend to add another 17 soon," he said.

Of the average daily turnover of around Rs 1,000 crore, 70 per cent is in gold and silver, while cotton and its derivatives account for 10 per cent and soya and soya oil for another 10 per cent.

Other commodities account for the remaining 10 per cent of the turnover. "Since beginning operations, we have clocked a turnover of Rs 68,997 crore," Shah said.

MCX, an independent multi-commodity exchange, has permanent recognition from the government for facilitating online trading, clearing and settlement operations for commodity futures markets across the country and is headquartered in Mumbai.

Inaugurated in November 2003 by Mukesh Ambani, chairman and managing director, Reliance Industries, MCX offers futures trading in 35 commodities including agri commodities, bullion, metals, pulses, oils and oilseeds, plantations, spices and the like.