Indiabulls set to sell 35% stake in comex

Indiabulls Financial Services is set to close a deal with HDFC Bank, Yes Bank and Delhi-based India Potash to offload around 35 per cent stake in the commodity exchange it is setting up with public sector company MMTC.

While the details of the new shareholding are unavailable, Yes Bank Managing Director and CEO Rana Kapoor told Business Standard that the private player is in talks to acquire 5-10 per cent stake in the exchange.

A source close the development said the three players are expected to pick up around 10 per cent each in the venture, with MMTC holding 26 per cent and Indiabulls the remaining 40 per cent stake. Indiabulls has been asked by the regulator, Forward Markets Commission (FMC), to pare its stake from 74 per cent at present.

According to FMC guidelines, no investor can hold over 40 per cent stake in a national exchange. It had also said institutions connected with financial and commodity markets may be allowed to hold up to 20 per cent, while foreign investors can hold a maximum 5 per cent equity in Indian exchanges.

When contacted, a senior Indiabulls executive first said the company did not comment on market speculation. Later, he said, “Banks cannot pick up stake without the Reserve Bank of India’s (RBI) permission. We will make an announcement when we are in a position to do so,” the executive said.

Indiabulls Financial Services CEO Gagan Banga told a news agency today that the players the company is in talks with are in the process of getting RBI and other approvals.

While Indiabulls will set up the exchange, it will exit the commodities broking arena to avoid any conflict of interest, a source said.

The proposed venture, which will be headquartered near Gurgaon, will be the fourth national commodity exchange after Multi Commodity Exchange, National Commodity & Derivatives Exchange and National Multi-Commodity Exchange.