Mumbai: Anil Ambani-run Reliance Money may acquire 5% more stake in the National Multi-Commodity Exchange of India (NMCE) to take its holding to 15% in line with the new guidelines.
“As per the new guidelines issued by the Forward Markets Commission (FMC), we can take an additional 5% stake in NMCE,” Reliance Money’s managing director Sudip Bandyopadhyay told PTI here.
The next NMCE board meeting, which could take place in two months, will decide on the fund raising plans for exchange, Bandyopadhyay said.
Last year, Reliance Money had acquired a 10% stake in NMCE. The new FMC guidelines state that no single investor can hold more than 15%.
“This means we have a scope to increase our stake by 5%,” Bandyopadhyay said.
The FMC circular said that every commodity exchange should have a minimum paid-up capital of Rs50 crore and a minimum net worth of Rs100 crore by September 2010.
“In accordance with the new guidelines, NMCE also needs to expand its capital to Rs50 crore within the next one year. NMCE may come out with prefrential or some kind of offer,” Bandyopadhyay said.
NMCE earlier said that it is in talks with a couple of Indian private equity players and foreign institutional investors for a stake sale to meet its working capital needs.
The exchange is planning to raise money from the market through a preferential allotment of shares.
“Since Reliance Money can take only 5% more, we need to have more investors in NMCE,” he said.
Asked on the time-frame for upping its stake, Bandyopadhyay said, “Reliance Money would be freezing its future road-map in the next couple of months and the process has to be completed by September 2010.”
Elaborating on its future plans, he said, the daily turnover at NMCE has shot up from Rs200 crore to Rs1,000 crore after Reliance Money acquired 10% stake last year.
The commex would launch more new contracts and revamp several existing contracts, making it more contemporary or relevant, Bandyopadhyay said.
He advocated participation of corporates, institutions and foreign players in commodities trading as it would not only increase volumes but also help in deepening the market.
To a query on how the poor monsoon could impact the commodity sector, the Reliance Money chief said that it may have an impact on some commodities.
The kharif crop has definately been affected but the rabi crop is expected to be good provided the monsoon improved, he said.