R Money to acquire up to 26% stake in NMCE

Confirming the development, Reliance Money's Chief Executive Sudip Bandopadhyay told PTI that both the parties have agreed to the transaction and the ADAG company would approach commodity markets' regulator Forward Markets' Commission (FMC) for necessary approval coming Monday.        

Declined to reveal the cost of acquisition, Bandopadhyay hoped that the deal should be inked within a month and said that Reliance Money would foot the bill from internal accruals.        

Market sources said the value of the deal would be around USD 25 million (Rs 100 crore), the amount Bombay Stock Exchange (BSE) doled out to pick up 26 per cent stake in NMCE last February.        

"To be in the commodity exchange business is a logical extension for the company. The market is huge and it provides us a tremendous opportunity," Bandopadhyay said.        

Reliance Money will have two Directors in the Board of NMCE, he said.        

Ahmedabad-based NMCE is the first de-mutualised electronic multi-commodity exchange in the country. It commenced futures trading with 24 commodities in November, 2002 on a national scale.        

Since then its basket of commodities has grown substantially to include cash crops, food grains, plantations, spices, oil seeds, metals and bullion among others.