Kotak Group, the promoter of ACE Derivatives and Commodity Exchange, has been given 3-month extension to dilute 11% stake in the entity by November 10, the Forward Markets Commission (FMC) said.
"ACE has been granted extension of time for reduction of the shareholding by Kotak Group from 51% to 40% by three months up to November 10," the commodity futures markets regulator FMC said on its website.
The exchange is India's fifth pan-India commex and is anchored by the Kotak Group.
As per FMC guidelines, an anchor investor can hold up to 26% stake in a national level commodity bourse.
The Kotak Group was asked to comply with the norm by reducing its stake in phases. It had to dilute the stake by 11% to 40% in the commex by August 2011, and further bring it down to 26% by 2014-15.
Apart from Kotak group's holding of 51%, HAFED has a 15% stake in the commex, while three public sector banks - Union Bank of India, Bank of Baroda and Corporation Bank - hold a 5% each. The remaining 19% stake is with earlier stakeholders.
Ace Derivatives and Commodity Exchange launched its national level operations last year on October 27 and completed ten months of its operations.
The turnover of ACE was Rs 10,385 crore in August. The exchange has witnessed a steady increase in both the daily traded volumes as well as open interest across all the traded commodities.
