The National Stock Exchange (NSE) today said it has approached the government seeking more time for diluting its stake in agri-commodity bourse NCDEX to 5% as it has failed to meet the March 31 deadline to comply with commodity markets regulator Forward Markets Commission's (FMC) new norms.
NSE, at present, has 11.1% stake in NCDEX. Under the new guidelines for commodity bourse which have completed five-year term, a stock exchange cannot hold more than 5% stake in a commodity bourse.
"We have made good progress but these things take time because of the paperwork involved. We have requested the central government for some more time," the NSE spokesperson told PTI.
The Consumer Affairs Ministry frames policy for the commodity futures market and the regulator oversees the functioning of the 23 commodity exchanges in the country.
Earlier this week, the FMC had said it will not give further extension to meet the norm and pointed out that the stock exchange will lose its voting right on the extra stake as per the Company Law.
"I cannot give more time to NSE. It is not in my hands. I have the discretion of giving extension of three months and that I have already given," FMC Chairman BC Khatua had said.
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The NCDEX has complied with all other norms except the reduction of the stake by NSE, he had said.
Recently, NCDEX roped in Jaypee Capital Services and Shree Renuka Sugars to enhance their networth to Rs 50 crore as required under the new norm.
Jaypee Capital holds 22.38% stake in NCDEX, while Shree Renuka Sugars has 12.5% stake in the country's second-largest commodity bourse.
LIC, IFFCO and NABARD are among other major shareholders in the exchange.