Kotak Group-promoted Ahmedabad Commodity Exchange (ACE) today said it would complete all the necessary formalities to transform into a national bourse before its August 13 deadline expires.
Regional exchange ACE has been given time till August 13 by commodity market regulator FMC to meet the guidelines to become a national exchange that includes demutulisation and a total net worth of Rs 100 crore.
"We are in the advanced stage of completing necessary formalities required for final recognition. We will surely complete well before the deadline," Kotak Group Head of Strategy T Raghunath said when asked whether it would be able to meet the guidelines this time.
ACE had missed the earlier deadline of May 13, however, Forward Markets Commission (FMC) gave it a three-month extension to complete the process.
The country at present has four national exchanges- MCX, NCDEX, NMCE and ICEX- and 19 regional bourses.
In 2009, Kotak Group became an anchor investor by picking up 51 per cent stake in ACE. It is helping in upgradation of the regional castor exchange to a national multi-commodity bourse.
"The exchange is in the advanced stage of raising its net worth to Rs 100 crore, which is one of the requirements to become a national bourse," he said.
Last week, state-run procurement agency Haryana State Cooperative Supply & Marketing Federation Ltd (HAFED) had said it has bought 15 per cent stake in ACE.
Asked about Hafed's stake in the exchange, Raghunath declined to comment: "The exchange has signed a non-disclosure agreement with the stake holders."
Commodity market regulator FMC has set up guidelines for national exchanges, which include demutualisation, raising net capital to Rs 100 crore, setting up of infrastructure for conducting online trading and delivery centres, across the country for various commodities.
According to FMC guidelines, the proposed national exchange should have a demutualised structure, which means the share holders of the exchange should not have any trading interest either as a trading member or client at the exchange.
