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ACE has been given time till 13th August by commodity market regulator Forward Markets Commission (FMC) to meet the guidelines to become a national exchange that includes demutualisation and a total net worth of Rs100 crore
Kotak Group-promoted Ahmedabad Commodity Exchange (ACE) today said it would complete all the necessary formalities to transform into a national bourse before its 13th August deadline expires, reports PTI.
Regional exchange ACE has been given time till 13th August by commodity market regulator Forward Markets Commission (FMC) to meet the guidelines to become a national exchange that includes demutualisation and a total net worth of Rs100 crore.
"We are in the advanced stage of completing necessary formalities required for final recognition. We will surely complete well before the deadline," Kotak group head of strategy T Raghunath said when asked whether it would be able to meet the guidelines this time.
ACE had missed the earlier deadline of 13th May, however, FMC gave it a three-month extension to complete the process. The country at present has four national exchanges-Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange of India (NCDEX), National Multi Commodity Exchange (NMCE) and Indian Commodity Exchange (ICEX)-and 19 regional bourses.
In 2009, the Kotak Group became an anchor investor by picking up 51% stake in ACE. It is helping in upgradation of the regional castor exchange to a national multi-commodity bourse.
"The exchange is in the advanced stage of raising its net worth to Rs100 crore, which is one of the requirements to become a national bourse," he said. Last week, state-run procurement agency Haryana State Cooperative Supply & Marketing Federation Ltd (HAFED) had said it has bought 15% stake in ACE.
Asked about HAFED's stake in the exchange, Mr Raghunath declined to comment: "The exchange has signed a non-disclosure agreement with the stake holders."
Commodity market regulator FMC has set up guidelines for national exchanges, which include demutualisation, raising net capital to Rs100 crore, setting up of infrastructure for conducting online trading and delivery centres, across the country for various commodities.
According to FMC guidelines, the proposed national exchange should have a demutualised structure, which means the share holders of the exchange should not have any trading interest either as a trading member or client at the exchange.
The government has also constituted a high-level committee chaired by finance minister Pranab Mukherjee, which will sort out all issues of jurisdiction regarding hybrid products
After winning the turf war with market watchdog Securities and Exchange Board of India (SEBI) on Unit Linked Insurance Plans (ULIPs), insurance regulator Insurance Regulatory and Development Authority (IRDA) today said it would frame new guidelines for these products to make them more attractive for policy holders, reports PTI.
"Certainly, yes," Insurance Regulatory and Development Authority (IRDA) chairman J Hari Narayan told PTI when asked whether the insurance regulator would unveil new guidelines for ULIPs to make them attractive for investors.
The government has ended the turf war between IRDA and SEBI, saying Unit Linked Insurance Plans (ULIPs) will be regulated by IRDA.
On Friday night, president Pratibha Patil issued the Ordinance, explaining that the life insurance business shall include any unit-linked policy or scrips or any such instruments.
The government has also constituted a high-level committee chaired by finance minister Pranab Mukherjee, which will sort out all issues of jurisdiction regarding hybrid products.
The committee on hybrid products will include the finance secretary, the financial services secretary and heads of Reserve Bank of India (RBI), IRDA, SEBI and the Pension Fund Regulatory and Development Authority (PFRDA).
SEBI in April took the market by surprise when it banned 14 life insurance firms from issuing fresh ULIP schemes.
However, IRDA asked the life insurers to ignore the SEBI order and the matter then went to the finance ministry, which advised them to move the court. In the meantime, the ministry had asked them to maintain the status quo.
ULIPs account for more than 50% of the life insurance business and the money collected from policy holders is invested in equities.