Presently NSE holds 11.1% stake in NCDEX. Under the new guidelines for commodity bourses that have completed a five-year term, a stock exchange cannot hold more than 5% stake in a commodity bourse
New Delhi: National Stock Exchange (NSE) has again approached the consumer affairs ministry to seek extension of three months to dilute its stake in the commodity bourse National Commodities and Derivatives Exchange (NCDEX) to 5%, reports PTI.
The deadline for dilution of the stake is expiring today.
NSE had earlier got a three-month extension from the ministry in April.
At present, NSE has 11.1% stake in NCDEX. Under the new guidelines for commodity bourses that have completed a five-year term, a stock exchange cannot hold more than 5% stake in a commodity bourse.
"NSE has sought further extension of three months for stake dilution in NCDEX and we are considering it," a senior consumer ministry official said.
NSE has contended that it is in advance stage of talks with a domestic company and a Qatar-based firm for dilution of stake in NCDEX, the official said, adding the exchange has sought extension as it would take more time to get regulatory approvals required for completion of the deal.
The stock exchange plans to sell 5% stake to the overseas firm and the rest 1.1% to the domestic entity, the official said.
The consumer affairs ministry frames policies for the commodity futures market and the regulator Forward Market Commission (FMC) oversees the functioning of the 23 commodity exchanges in the country.
Earlier this year, NCDEX had roped in Jaypee Capital Services and Shree Renuka Sugars to enhance their networth to Rs50 crore as required by the new norms.
Jaypee Capital holds 22.38% stake in NCDEX, while Shree Renuka Sugars has 12.50% stake in the country's second largest commodity bourse. LIC, IFFCO and NABARD are among other major shareholders in the exchange.
Sources said that NSE has already signed the term sheet to sell 6.1% of stake in NCDEX to meet the revised FMC guidelines and has sought extension of three months to complete the formalities.
The deal for share sale would need approvals from the government's FDI clearance body Foreign Investment Promotion Board (FIPB), Reserve Bank of India (RBI) and FMC.
Reliance Broadcast is eyeing over 30% growth in its overall business in the next five years
Reliance Broadcast Network (RBNL), an Anil Dhirubhai Ambani Group company, plans to invest Rs100-Rs200 crore to tap the private FM radio segment, which is expected take a leap when the third phase of licensing for stations kicks off, a top company official said.
"The radio industry is poised for exponential growth with phase III rollout. We have already built robust radio network and after the rollout we will get an opportunity to further increase our reach. We plan to invest Rs100-Rs200-crore for the phase III rollout," RBNL's chief executive officer Tarun Katyal told reporters.
The radio business currently contributes to around 70% of the company's revenues, while the remaining 30% is contributed by other businesses including TV, intellectual property (IP) and out of home (OOH).
"With the proliferation of digitalisation of television channels in the country, we want to focus on our TV business. We want to increase our revenue share from the TV business to 30-40% in the coming five years," he said.
The company is eyeing over 30% growth in its overall business in the next five years "through a strategic and well planned business plan," he said.
RBNL currently beams four channels including three from its joint venture with US-based CBS studios. It has also launched BIG MAGIC which is exclusively for Hindi heartland of UP, MP and Bihar.
RBNL plans to launch two new television channels in this fiscal in collaboration with television channel major RTL Group, Katyal said, adding that the channels will be in the reality and action entertainment genres.
"The company is exploring opportunities to grow its bouquet of channels to a significant number and also take them global over a period of time, targeting emerging markets. We plan to take the CBS channels to South America," he said.
In the radio segment, the company expects to start the phase-III of its expansion plan, which will increase its radio station count by 223 new stations, he said.
On Thursday, RBNL ended 0.12% down at Rs80.45 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.81% to 18,845.87.
“The proceeds will be used to clear debt that is around Rs30 crore,” Vishal Retail chairman & managing director RC Agarwal said
Vishal Retail said it plans to sell four properties for an estimated value of Rs50 crore to clear debt and partly fund new expansion under the 'V2 Retail' brand.
"We plan to sell four properties (three shops and a piece of land in Dehradun) which are valued around Rs50 crore. The proceeds will be used to clear debt that is around Rs30 crore," Vishal Retail chairman & managing director RC Agarwal told PTI.
The company is in the process of setting up eight new stores (five in Delhi-NCR, two in Himachal Pradesh and one in Jamshedpur) with a total area of 1 lakh sq ft.
"We are expecting a sale of up to Rs10 crore per month through these stores, this store will be operational by 30 July 2011," Agarwal said.
He said the expansion will be funded through internal accrual and money raised from the sale of properties. Vishal Retail's shareholders have approved changing the company's name to V2 Retail and its plan to enter real estate business.
"Within the next three months the name will be changed from Vishal Retail to V2 Retail," Agarwal said. The company, however, does not have any immediate plans to enter the real estate sector.
"If in the future any opportunity arises we have enabled our self through the postal ballot. Right now we do not have any plan to enter into the real estate business," he said.
In March this year, Vishal Retail had announced sale of its retail business to the Sriram Group company, Airplaza Retail Holdings and the wholesale business to private equity firm TPG Wholesale for a total consideration of Rs70 crore.
In 2009, Vishal Retail got into financial trouble and piled up debt of around Rs730 crore. It was forced into a corporate debt restructuring (CDR) programme.
On Thursday, Vishal Retail ended 3.39% up at Rs33.55 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.81% to 18,845.87.