The Consumer Affairs Ministry has sought views of commodity market regulator the Forward Markets Commission (FMC) on the National Stock Exchange's (NSE) request to give more time to dilute stake in agri-commodity bourse NCDEX, official sources said today.
Last week, the NSE had written a letter to the ministry seeking six months more time to reduce its stake in NCDEX from the current 11.1% to 5%.
Under the new guidelines for commodity bourses which have completed five-year term, a stock exchange cannot hold more than 5% stake in a commodity bourse.
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.
Recently, 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.
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.
