Crisil seeks FIPB nod for stake sale in NCDEX to JM Financial

New Delhi: Rating agency Crisil has sought approval from the Foreign Investment Promotion Board (FIPB) to sell 5% of its stake in the National Commodity and Derivative Exchange of India (NCDEX) to JM Financial Trustee Company, to meet the regulatory standards, reports PTI.

Currently Crisil, a subsidiary of global rating agency Standard & Poor's, has 12% stake in agri-commodity bourse NCDEX. It has to reduce it to 5% by September-end to meet the FIPB norms.

According to a senior government official, "Crisil has approached FIPB, which in turn has sought comments from the consumer affairs ministry about the stake sale of Crisil in NCDEX to JM Financial Trustee Company, promoted by J M Financial & Investment."

The consumer affairs ministry, which overseas the functioning of 23 commodity exchanges, is examining the matter and would take the views of the sector regulator Forward Markets Commission (FMC) in this regard, the official said.

When contacted, Crisil and J M Financial declined to comment.

FIPB is a nodal government agency that monitors foreign direct investment into the country. As per the news norms, foreign entities are not allowed to hold more than 5% stake in domestic commodity exchanges.

FIPB has set the deadline of 30th September for foreign firms to offload their extra stake in commodity bourses.

Earlier this year, Fidelity reduced its stake in the Multi Commodity Exchange (MCX) from 9% to 5% to meet FIPB norms.

Last year, ICE and Goldman Sachs, which currently hold 4% each in NCDEX, together sold 5% in NCDEX to leading sugar refined Shree Renuka.
 

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Personal finance Friday

Tata Mutual Fund launches Tata Fixed Maturity Plan Series 27-Scheme A & B; ICICI Prudential MF launches ICICI Prudential Fixed Maturity Plan-Series 52; Peerless MF files offer document with SEBI to launch Peerless MF Child Plan; L&T Mutual Fund files offer document with SEBI to launch L&T FMP-II

Tata Mutual Fund launches Tata Fixed Maturity Plan Series 27-Scheme A & B

Tata Mutual Fund has launched Tata Fixed Maturity Plan Series 27-Scheme A & B, a close-ended debt scheme. The new fund offer (NFO) has opened on 26 August 2010 and will close on 1 September 2010. The NFO price for the schemes A & B is Rs10 per unit. Tata Fixed Maturity Plan Series 27-Scheme A has a maturity period of 366 days from the date of allotment. Tata Fixed Maturity Plan Series 27-Scheme B has a maturity period of 12-18 months from the date of allotment. The investment objective of the schemes is to generate income and/or capital appreciation by investing in debt and money market instruments having maturity in line with the maturity of the respective schemes. The scheme offers two options - growth and dividend. The minimum amount of investment for the schemes is Rs10,000.

ICICI Prudential MF launches ICICI Prudential Fixed Maturity Plan-Series 52

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Peerless MF files offer document with SEBI to launch Peerless MF Child Plan

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L&T Mutual Fund files offer document with SEBI to launch L&T FMP-II

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