State-run Power Finance Corporation may buy seven per cent stake at a cost of Rs 1.75 crore in the Power Exchange India Ltd, promoted by the National Stock Exchange and commodity bourse NCDEX.
"The board of PFC has given approval to participate in the equity of Power Exchange India Ltd (PXI) up to seven per cent share capital not exceeding Rs 1.75 crore," PFC said in a filing to the Bombay Stock Exchange.
PXI, promoted by NSE and National Commodity and Derivatives Exchange (NCDEX), would provide electronic, transparent and neutral platform for trading of electricity. PFC may also participate as a professional clearing member in PXI, the filing added.
Last month, NCDEX Managing Director and Chief Executive Officer R Ramaseshan had said that it would unveil the country's second power exchange in joint venture with the National Stock Exchange on October 1.
The joint venture company, PXI, has already been registered and any dilution of stakes in the new firm would depend on the interest shown by the power generating and trading companies, Ramaseshan had said.
Earlier sources said the NSE-NCDEX promoted energy exchange is likely to be named as National Power Exchange, which will allow spot trading of electricity.
Leading commodity exchange the MCX has already started India Energy Exchange (IEX), where many power trading companies both in public and private sectors have stakes.
Shares of PFC were trading at Rs 122.15, down 2.63 per cent in the late afternoon trade on the BSE.
