BSE to pick up 26% stake in NMCE
The Bombay Stock Exchange plans to pick up 26% stake in Ahmedabad-based National Multi-Commodity Exchange of India Ltd (NMCE), an announcement of the formalisation of the tie-up is expected here tomorrow.
In June 2007, the Bombay Stock Exchange had approached the Forward Markets Commission (FMC), the commodities market watchdog, for buying 26% stake in NMCE. The valuation for the stake sale to BSE is not known, but the new capital infusion with a premium is expected to be around Rs 100 crore.
A senior BSE official, who did not wish to be identified, declined to comment on the value of the deal because of a confidentiality clause.
BSE might eventually take control of the management of the demutualised online commodity exchange, the official said.
The tie-up with BSE would help NMCE increase its trade volumes in agricultural and other commodities as it would then have access to the large BSE trading platform network besides its expertise in running a large bourse.
The BSE would become the second stock exchange, after the National Stock Exchange (NSE) which has a 15% interest in NCDEX, to hold a stake in a commodity exchange
