NMCE gets six months' extension to meet FMC norms

In what could bring some respite to the National Multi Commodity Exchange (NMCE), the Forward Markets Commission (FMC) has given an extension of six months for raising its minimum capital base.

NMCE was supposed to comply with FMC regulations of restricting promoters' stake to 26 per cent and raising the minimum capital base to Rs 50 crore by March 31. However, the exchange had requested FMC to extend its deadline.

“We had applied for an extension to the market regulator and have been granted an extension of up to September 30 to meet the capital restructuring requirements set by the regulator,” said Anil Mishra, MD and CEO, NMCE.

He said this would enable the exchange to raise funds from outside investors. The exchange is believed to be in talks with some investors. “Now, as we have more time, our priority would be to bring foreign investors. Later, if needed, we would go for a rights issue or a bonus issue,” he said. According to FMC guidelines, nationalised commodity exchanges, including Multi Commodity Exchange, National Commodities and Derivatives Exchange and NMCE, would have to increase their capital base to Rs 50 crore each and restrict the individual stake of each anchor investor in the exchange to a maximum 26 per cent.

NMCE has an equity base of Rs 19.12 crore, which would be required to be raised to Rs 50 crore. The exchange has Kailash Gupta and Central Warehousing Corporation as promoters.