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Mumbai: Shree Renuka Sugar Ltd (SRSL) is in advanced talks to sell its minority stake of 5% in agricultural commodities exchange National Commodity and Derivatives Exchange (NCDEX) to a foreign fund, said two people familiar with the developments.

“A share sale agreement which involves selling the remaining 5% stake to a foreign fund has been sent to Securities and Exchange Board of India (Sebi) for its approval," said the first person quoted above.

A second person confirmed the developments saying that the deal would be finalized only after regulatory approval.

The deal size is estimated to be a little over 50 crore and will allow SRSL to exit NCDEX fully.

Narendra Murkumbi, Managing Director of SRSL told Mint that any development would be first put out on the exchanges.

An email sent to NCDEX spokesperson on Thursday did not elicit a response.

SRSL had bought a 5% stake in NCDEX from Goldman Sachs Asset Management India in 2009. Subsequently, it raised its stake to 12.5% in 2010. In 2014 it divested 7.5% stake following new guidelines from the erstwhile commodity market regulator, Forward Markets Commission (FMC), which did not allow a trading member to hold more than 5% stake in commodity exchange.

The National Stock Exchange of India Ltd holds the largest stake in NCDEX at 15%. The Life Insurance Corporation has a 11.1% stake in the commodity exchange.

ABOUT THE AUTHOR
Jayshree P Upadhyay
Jayshree heads a team of reporters focussing on legal, regulatory, investigative stories. She has worked for over a decade, reporting on financial scams, legal stories and the intersection of corporate and regulatory issues. She is based in Mumbai and has previously worked with Business Standard, Mint, The Morning Context and Bloomberg TV India.
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Updated: 23 Jun 2016, 08:25 PM IST
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