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| Renuka Sugars gets FMC nod for stake purchase in NCDEX |
| Newswire18 / Mumbai Aug 13, 2009, 00:28 IST |
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 The Forward Markets Commission (FMC) has approved Shree Renuka Sugars’ proposal to buy 5 per cent stake in the National Commodity and Derivatives Exchange (NCDEX), FMC Chairman B C Khatua said on Wednesday.
Renuka Sugars is buying 1.5 million shares of NCDEX at Rs 243 rupees a share. Goldman has sold 2 per cent stake while Inter-Continental Exchange (ICE) has offloaded 3 per cent stake in the bourse.
After this sale, Goldman and ICE stake has come down to the mandatory 5 per cent limit.
“Shree Renuka Sugars will submit the cancellation of their membership after they liquidate their open positions in the NCDEX September delivery sugar contract that expires September 19,” Khatua said.
“We have to ensure that both Shree Renuka and the foreign entities selling stake are able to conform to the guidelines,” he added.
As per FMC guidelines, Shree Renuka Sugars cannot hold a 5 per cent stake in NCDEX and also have a trading interest on the exchange.
“Sugar futures ban has made it difficult for players like Shree Renuka Sugars that hold open positions from squaring off their positions. We will try and facilitate them as the ban is not their fault and will ensure that the spirit of stake holding guidelines is adhered to,” he said.
The last date for the foreign entities to conform to government guidelines on holding of stakes by foreign players in Indian commodity exchanges is September 30.
ICE till now held 8 per cent stake in the exchange while Goldman had a 7 per cent stake, which was in excess of the government order that capped individual foreign investments in commodity exchanges at 5 per cent.
Shree Renuka Sugars shares on National Stock Exchange (NSE) on Wednesday settled 0.6 per cent lower at Rs 185.05.
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