The National Stock Exchange (NSE) is likely to get a six-month extension to reduce its stake from the current 11.5 per cent to five per cent in the National Commodity and Derivatives Exchange of India (NCDEX). The earlier deadline expired on March 31.
NSE has sent a proposal to this effect to the government. Those familiar with the development said things are at an advanced stage of approval.
On the sidelines of an event, Consumer Affairs Secretary Rajeev Agarwal said, “We have received a proposal from NSE for extending the deadline for six months and things are under consideration.”
Only yesterday, the Forward Markets Commission (FMC) had said it would not extend the deadline for NSE.
“No, we are not giving any extension, as has been the case with National Multi Commodity Exchange (NMCE),” FMC Chairman B C Khatua had said. NMCE has already been given six months time to comply with the FMC norms.
Under the new guidelines for commodity exchanges which have completed a five-year term, a stock exchange cannot hold more than five per cent stake in a commodity bourse. Recently, NCDEX roped in Jaypee Capital Services Ltd and Shree Renuka Sugars Ltd to enhance its net worth to Rs 50 crore as required under the new norm.
The exchange has appointed JM Financial to find a buyer. Jaypee Capital holds 22.38 per cent stake in NCDEX, while Shree Renuka Sugars has 12.50 per cent stake in the country’s second largest commodity bourse.
