FMC ask Indiabulls to reduce stake in commodity exchange

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Mumbai, July 18: : The commodity watchdog Forward Markets Commission (FMC) has asked Indiabulls Financial Services Ltd to bring down stake in its proposed commodity exchange to 40 per cent to meet regulatory requirements, an official said on Friday.

The government yesterday gave its approval to state- run trading firm MMTC for setting up a commodity bourse in Haryana in partnership with Indiabulls Financial Services.

"Indiabulls will have to reduce their stake to ceiling of 40 per cent within a month," FMC Chairman B C Khatua told reporters in Mumbai.

The private company, which received approval for setting up a new commodity exchange on Thursday, proposes to hold 74 per cent stake in the said exchange.

As per the shareholding pattern, no single entity can hold more than 40 per cent stake in a commodity exchange, Khatua said.

A PSU can hold upto 26 per cent in the new commodity exchange and we also want minimum 20 per cent from institutions connected with financial market and commodity markets, he said.

The FMC approved MMTC's application for the multi-commodity exchange, to be set up in Gurgaon, subject to fulfilling the commitments made in the detailed project report submitted to the commission.