IMX all set to go live in Q1 FY10

Indiabulls Financial Services had said its commodity exchange, International Multi-commodity Exchange (IMX), will go live in the first quarter of the next financial year. Indiabulls has floated this exchange in partnership with MMTC.

“The exchange is expected to go live in the first quarter of next financial year, subject to regulatory approvals,” Indiabulls said in a statement.

The exchange would also have Indian Potash and a small trading firm among the total of six partners, promoting the country’s fourth national commodity bourse.

IBFSL and MMTC have started the process of operationalising the Multi Commodities Exchange and appointed a US-based firm for setting up its technology platform.

The US-based exchange services provider Millennium Information Technology (MIT) has been awarded the contract for implementing the technology platform for the aforesaid exchange, the statement added.

Initially, the commodity exchange was proposed to be a joint venture between Indiabulls and MMTC sharing the equity stake of 74 per cent and 26 per cent, respectively.

However, the revised government guidelines announced on May 14 last year did not allow single shareholder to hold more than 40 per cent equity of the exchange forcing Indiabulls to look for partners for diluting the stake.

The turnover in the commodity market has surged 28 per cent over the year-ago period to Rs 50,33,857 crore, paving way for many new players to enter the fray. Meanwhile, IBFSL joint venture with Sogecap, the insurance arm of Societe Generale (SocGen) for its life insurance venture, would soon kick start the JV entity as the company expects to finish the licensing process by fourth quarter of FY09.

The company has designated Chirag Jain as the CEO (Designate) of the entity, subject to regulatory approval.Besides, IBFSL would launch its asset management business in the fourth quarter of the current financial year.