Anil Ambani's Reliance Money has picked up a 10% stake in the third largest commodity exchange in the country, National Multi-Commodity Exchange (NMCE). It has received the nod of commodities market regulator the Forward Markets Commission (FMC) for this move. The two parties reached an agreement in July this year where Reliance Money was to pick up 26% stake in the bourse for $25 million. This stake sale is part of that deal. Bombay Stock Exchange also signed a deal to pick up 26% stake in NMCE, but dropped that plan in August.
There are other players who are also entering this segment. Kotak has also bought stake in Ahemadabad's regional commodity exchange. Indiabulls has also received permission to set up a greenfield national comex from FMC, but has been asked to pare down its holding.
FMC guideline mandates that an individual promoter should not hold more than one per cent, while a single entity can hold up to 40% equity in an exchange. Indiabulls had proposed that it hold 74% stake while MMTC the remaining 26% stake. It is in talks with various parties to sell the excess stake.
Presently there are only three national commodity exchanges. Multi-Commodity Exchange of India Ltd has a majority share of this market. The second-largest player is National Commodity and Derivatives Exchange (NCDEX).