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Gargi Shah

`It is a strategic relation, not a buyout'

THE TIE-UP would help NMCE to leverage on the large network of BSE — Shashi Ashiwal

Mumbai June 13 The Bombay Stock Exchange has submitted a proposal to the Forward Market Commission to purchase a stake in the National Multi-Commodity Exchange (NMCE) for the regulator's approval.

"The proposal has just come to us and we shall consider the same under the relevant regulations," said Mr B.C. Khatua, Chairman of the Forward Market Commission.

The proposal is in the nature of a strategic relation and not a buyout, said an official of the commodity exchange.

The tie-up would help NMCE to leverage on the large network of BSE besides its expertise in running a large exchange.

"There are certain inactive contracts that we would like to activate and develop other contracts," said the NMCE official commenting on the synergy of the proposed deal.

However, the BSE said it would not comment on the issue.

The Ahmedabad-based commodity exchange is promoted among others, by the Central Warehousing Corporation, Neptune Overseas Ltd - a government recognised export house, and Punjab National Bank.

Pepper, rubber and cardamom are the main commodities traded on the commodity exchange.

There is a precedent of a stock exchange having a stake in a commodity exchange with NSE holding a stake in the National Commodity and Derivative Exchange of India.

More Stories on : Commodity Exchanges | Stock Exchanges | Regulatory Bodies & Rulings

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NMCE stake: BSE submits proposal to FMC

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