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| Renuka Sugars gets FMC nod to buy 5% stake in NCDEX |
| Press Trust of India / Mumbai Aug 14, 2009, 15:28 IST |
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The Forward Markets Commission (FMC) has approved Shree Renuka Sugars' proposal to buy five per cent stake in National Commodity and Derivatives Exchange (NCDEX), FMC Chairman B C Khatua said here.
Shree Renuka Sugars will have to surrender membership in the NCDEX before acquiring the stake as it cannot remain a shareholder and enjoy trading rights in the same exchange.
Shree Renuka Sugars will have to submit the cancellation of their membership after they liquidate their open positions in the NCDEX.
Their September delivery sugar contract expires on September 19, Khatua said. Renuka Sugars would buy 1.5 million shares of NCDEX at Rs 243 a share.
Goldman has sold two per cent stake while Inter-Continental Exchange (ICE) has offloaded three per cent stake in the bourse.
After the sale, Goldman and ICE stake has come down to the mandatory five per cent limit.
The last date for the foreign entities to conform to government guidelines on holding of stakes in Indian commodity exchanges is September 30.
Shree Renuka Sugars Managing Director, Narendra Murkumbi refused to comment on the future plans of the company in NCDEX and said, "We are yet to receive official letter from the FMC."
Replying to a question on company's acquisition plans in Brazil, a company official said that talks are in the advanced stage.
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