PSU to acquire 2% equity in bullion association

Project & Equipment Corporation (PEC), a public sector company engaged in export and import of agricultural and industrial products, is about to acquire 2 per cent equity in the recently-launched India Bullion Markets Association (IBMA), an initiative of National Spot Exchange Ltd (NSEL) and leading jewellers of India.

PEC has already paid Rs 40 lakh for the stake. The board meeting of the IBMA is scheduled next week in which the allotment of equity shares will be decided. Public sector undertakings (PSUs) will get priority.

A senior PEC official confirmed the development but refused to give more details.

“We require banks and PSUs to participate in this unique initiative. Hence, any such party will get priority,” said Anjani Sinha, CEO and MD of NSEL, which has 51 per cent equity in the company.

The remaining 49 per cent will be shared among leading jewellers, for which the IBMA has received around 100 applications. The association has fixed four slabs for divestment — Rs 5 lakh, Rs 10 lakh, Rs 20 lakh and Rs 40 lakh for allotment of 0.25 per cent, 0.50 per cent, 1 per cent and 2 per cent of the company’s equity, respectively.