ICE eyes ICICI's NCDEX stake

Intercontinental Exchange (ICE), which trades in energy derivatives, is in talks to buy ICICI Bank's holding in the National Commodities and Derivative Exchange (NCDEX).

The bank is one of NCDEX's promoters, with the National Stock Exchange (NSE), Life Insurance Corporation and the apex agricultural refinance bank, the National Bank for Agriculture and Rural Development (Nabard).

Senior NCDEX executives, however, said nothing had been finalised although ICICI Bank is looking for a buyer for all or part of its 8 per cent stake.

If the talks fructify, this will be yet another instance of consolidation in the country's stock and commodity exchanges.

The trend has accelerated after the government allowed foreign entities to hold equity in Indian exchanges.

For instance, the New York Mercantile Exchange (NYMEX) is discussing the possibility of acquiring equity in the Multi-Commodity Exchange (MCX).

The NSE has brought in New York Stock Exchange (NYSE) as a partner with a 5 per cent equity.

Meanwhile, the Bombay Stock Exchange (BSE) is discussing a strategic partnership with Deutsche Bourse, SGX and NASDAQ.

BSE is also negotiating for a stake in the Ahmedabad-based on-line exchange NMCE (the National Multi Commodity Exchange) to gain a presence in commodity futures trading and improve its valuations.

NMCE, in turn, may issue new shares to BSE to get additional funds for expansion.

The Ahmedabad Commodity Exchange (ACE), a demutualised regional exchange that recently celebrated its golden jubilee, is readying to convert itself into a company ahead of acquiring a partner.

"We are waiting for the guidelines after which we will finalise our plan." a senior member of ACE said.