Kotak get FMC nod to invest in Ahmedabad Commodity Exchange

Kotak group has received approval from commodity market regulator FMC to invest in regional bourse - Ahmedabad Commodity Exchange (ACE).

"Yes, we have approved the proposal of Ahmedabad Commodity Exchange (ACE) and have asked the bourse to follow the guidelines set for national exchanges," Forward Markets Commission Chairman B C Khatua told PTI when asked about Kotak's proposal to invest in ACE.

Kotak Mahindra Bank today informed the Bombay Stock Exchange that it has received intimation from ACE about the approval from FMC. It said it would take appropriate steps in furtherance of the approval. It did not, however, give details about buying stake in the regional bourse.

Sources said though an individual corporate house can hold a maximum of 40 per cent stake in a national level commodity exchange, Kotak group has been given some concessions.

As the regional exchange will be upgraded to a national level bourse, the concessions were required to invite investment, the sources said without disclosing the details of the concessions.

According to the filing, ACE has received 'in-principle' approval from FMC for its proposal to upgrade and transform into nationwide multi commodity exchange.