Kotak Group-promoted ACE Commodity Exchange was launched as a national level commodity exchange today and has filed for regulatory approval to trade in four non-agri commodities.
"We aim to focus on both agriculture and metals and have already filed for four non-agri commodities -- crude, gold, silver and copper -- with the Forward Market Commission (FMC) for its approval," ACE Chief Executive Officer Dilip Bhatia told reporters on the sidelines of the launch.
Trading on the exchange, launched by Haryana Chief Minister Bhupinder Singh Hooda, will commence from tomorrow. ACE will offer futures trading in agricultural products like channa, castor seed, soyabean oil, soyabean and rape seed.
Initially, there will be 2-3 contracts, depending on the commodity, he said.
The bourse was earlier operating on a regional scale as Ahmedabad Commodity Exchange. Kotak Group is the anchor investor in ACE Commodity Exchange with a 51 per cent stake, while Haryana's Hafed has a 15 per cent interest and banks like Bank of Baroda, Union Bank and Corporation Bank have an over 14 per cent stake. The remaining equity is held by Ahmedabad Commodity Exchange members.
The admission fee for becoming an ACE member is Rs 2 lakh, besides an interest-free deposit of Rs 8 lakh, Bhatia said.
"In times to come, I hope ACE would also start its spot exchanges. Hafed (Haryana Cooperative Supply and Marketing Federation) will be a key player in helping the Haryana farmers to realise higher prices of their produce through services of such a spot exchange," Hooda said.
Kotak Mahindra Bank Vice-Chairman and Managing Director Uday Kotak said, "The commodity exchange represents our commitment to the creation of a premier multi-commodity national exchange."
