The Hindu Business Line : BSE drops plan to acquire stake in NMCE

Mumbai, Aug. 8 The Bombay Stock Exchange on Friday dropped its plans to pick up a stake in the Ahmedabad-based National Multi Commodity Exchange (NMCE), after it had signed an agreement to do so.

BSE was to have acquired a 26 per cent stake in NMCE for Rs 100 crore, but had been indecisive about going through with it.

Finally, the BSE board, which met on Friday, decided against the NMCE deal due to various reasons, BSE sources said.

Rajnikant Patel quits

Incidentally, the brain behind the deal Mr Rajnikant Patel, Managing Director and Chief Executive Officer, BSE, put in his papers on Thursday, citing personal reasons.

NMCE was launched in November 2002 as the country’s first online, de-mutualised, multi-commodity exchange with nationwide reach.

The legal and other formalities for the BSE-NMCE deal were cleared about seven months ago.

Mr Kailash Gupta, Managing Director, NMCE, said: “They (BSE) appear to have some problems, but we are not worried even if the deal does not go through. Till date they have not made any payments.”

Reliance Money in

Anil Ambani-owned Reliance Money had, in July, announced its intention to buy a 26 per cent stake in NMCE.

The exchange on Tuesday had approached the commodity markets regulator Forward Markets Commission for its approval, Mr Gupta said.

Related Stories:
BSE to buy 26 pc stake in NMCE
NMCE stake: BSE submits proposal to FMC

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