National Stock Exchange (NSE) has again approached the Consumer Affairs Ministry to seek extension of three months to dilute its stake in the commodity bourse NCDEX to 5%.
The deadline for dilution of the stake is expiring today. NSE had got three-months extension from the ministry in April.
At present, NSE has 11.1% stake in NCDEX. Under the new guidelines for commodity bourses, which have completed a five-year term, a stock exchange cannot hold more than 5 per cent stake in a commodity bourse.
"NSE has sought further extension of three months for stake dilution in NCDEX and we are considering it," a senior consumer ministry official said.
NSE has contended that it is in advance stage of talks with a domestic company and a Qatar-based firm for dilution of stake in NCDEX, the official said, adding the exchange has sought extension as it would take more time to get regulatory approvals required for completion of the deal.
The stock exchange plans to sell five per cent stake to overseas firm and the rest 1.1% to the domestic entity, the official said.
The Consumer Affairs Ministry frames policy for the commodity futures market and the regulator FMC oversees the functioning of the 23 commodity exchanges in the country.
Earlier this year, NCDEX had roped in Jaypee Capital Services and Shree Renuka Sugars to enhance their networth to Rs 50 crore as required by the new norms.
Jaypee Capital holds 22.38% stake in NCDEX, while Shree Renuka Sugars has 12.50% stake in the country's second largest commodity bourse. LIC, IFFCO and NABARD are among other major shareholders in the exchange.
