Source: Bombay Stock Exchange
In a significant move, the 133 years old Bombay Stock Exchange Limited (BSE), today signed an agreement to pick up 26% stake in Ahmedabad based National Multi- Commodity Exchange of India (NMCE).
This is the first foray of BSE in the commodities market. The acquisition will be through fresh issue of shares.
The agreement to formalise the deal was signed by Mr. Rajnikant Patel, Managing Director & CEO, BSE and Mr. Kailash Gupta, Managing Director, NMCE in the presence of Mr. B.C Khatua, Chairman, Forward Markets Commission (FMC) and Mr. G. N. Nair, Director- Finance, Central Warehousing Corporation.
NMCE is India's first demutualised and third-largest online commodity exchange. The alliance between the two exchanges will be of mutual benefit. It will facilitate BSE's entry into commodities trading while it will help NMCE to increase its market share. The most actively traded commodities on the exchange are pepper, cardamom and rubber.
Speaking on the occasion, Mr. Rajnikant Patel, Managing director and CEO, BSE said, "BSE's foray into the commodities market space will bring 133 years of expertise, the global brand value, technology, best corporate governance practices and nation wide reach. It denotes BSE's expanding horizon in the financial market space."
Mr. Kailash Gupta, MD, NMCE said, "This tie-up is truly futuristic. I believe that the futures trading of the National Multi-Commodity Exchange in Ahmedabad will make an important contribution to the future development of the Indian economy, especially India's agricultural economy. With this small step we are taking today by this signing, we start a new journey that will bring rewards to all the stake holders in the commodity markets"