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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