The United Stock Exchange of India (USE) has picked up a 10% stake in the Indiabulls and MMTC promoted International Multi Commodities Exchange (IMCE) for an undisclosed amount, reports The Economic Times.
With USE’s investment, IMCE has achieved a closure of its entire Rs 100 crore capital structure as per the government’s new guidelines on ownership. IMCE also happens to be the first commodity bourse in India to comply with the revised ownership criteria that mandates the participation of public sector units or co-operatives, besides a more diversified shareholding pattern.
IMCE, which has already applied to the regulator, Forward Markets Commission (FMC) for a final recognition, is expected to begin operations by the end of July, 2009. While MMTC holds a 26% stake in IMCE, Forward Markets Commission had asked Indiabulls to reduce its stake in the commodity exchange to 40%. India Potash Ltd. also holds a 10% stake in the commodity exchange.
In January this year, Indiabulls Financial Services had reportedly finalised Yes Bank and HDFC bank as its partners in the exchange. It had then said that it planned to have a total of 6 partners for its commodity exchange.
Innitially IMCE was proposed to be a joint venture between only Indiabulls and MMTC. While MMTC was supposed to hold a 26% stake, Indiabulls was to hold a majority stake of 74%.
However, the two companies were forced to shelve these plans as the government’s revised guideline, that were issued in May last year, did not allow a single shareholder to hold more than 40% stake in the commodity exchange. Indiabulls, hence, had to look for partners to dilute its stake.