The Bombay Stock Exchange (BSE), which recently dropped its plan of buying a 26% stake in commodities exchange National Multi-Commodity Exchange (NMCE), is reworking its strategy of getting into the commodities space. The bourse will explore the option of picking up a stake in another commodities exchange, and may even go it alone.
Alongside, the BSE is preparing to induct the two nominees from its strategic stakeholders, Deutsche Boerse (DB) and Singapore Exchange Ltd (SGX), after the necessary formalities are completed. The process of inducting the two nominees could be completed as early as next week, a top BSE official told FE.The names of the nominees have already been received by the exchange.
On the commodities foray, the official said: ?We have both options before us?either to pick a stake in another exchange, or do it ourselves. Nothing has been discussed at the board level yet.? The NMCE deal was called off by BSE recently after Reliance Money took a 26% stake in the exchange. With another large investor in place, BSE felt it would not be able to drive affairs at the exchange.
The commodities space has been witnessing a lot of activity of late, with the Indiabulls-MMTC joint venture also in the process of being set up as a major national commodities bourse. However, though Indiabulls has been reported to be preparing to offload a part of its stake in the bourse, an Indiabulls official said the company was not in talks with BSE for a stake sale.
The BSE board met on Saturday, but the exchange did not make any official statement on what transpired at the meeting. There were reportedly 30 ?routine? items on the agenda. BSE has also shortlisted some candidates to replace Rajnikant Patel, the former managing director and CEO, who resigned recently. However, no name has been zeroed in as yet, exchange sources said.
The exchange is also awaiting a Sebi inspection of its systems before it formally launches currency futures trading. While Sebi has said BSE would get clearance for currency futures when it reached the same level of preparedness as that of NSE, which launches the product on August 29, a BSE official said the exchange was fully geared up to launch such trading.
The exchange is also in talks with Sebi on listing its shares.