The Hindu Business Line : NSE, Nabard to pick up equity in MCX

NATIONAL Stock Exchange of India Ltd (NSE) and National Bank for Agriculture and Rural Development (Nabard) on Wednesday announced their strategic participation in the equity of MCX.

"We will announce the percentage of equity participation of both the premier institutions by end of this week," Mr Jignesh Shah, Managing Director of MCX told Business Line.

Equity investment by NSE and Nabard is a landmark accomplishment for the exchange. This makes MCX the `Exchange of Choice' among others in the commodities ecosystem, Mr Shah said.

According to reliable sources, NSE and Nabard will pick up 10 per cent together in MCX.

Nabard and NSE are among the major promoters of NCDEX, with equity stake of 15 per cent each.

Participation of Nabard in the equity of commodity exchanges will facilitate integration of agriculture credit; securitisation of agricultural produce and futures markets, leading to more efficient price discovery of farm produce.

To achieve this, Nabard has taken a conscious decision to enter into partnership with leading national level commodity exchanges, the release said quoting Ms Ranjana Kumar, Chairperson of Nabard.

"Contribution to the equity and participation in management of MCX is a step in this direction. The participation in MCX will enable the two national level institutions, Nabard and MCX, to work synergistically to achieve the objective of establishing an efficient and transparent agricultural market in India, in the larger interest of the farming community for better price realisation of their farm produce," she added.

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