FMC for equity rejig in comexes

The Forward Markets Commission (FMC) is in favour of restructuring the equity base of commodity exchanges. The commission is looking for a possible conglomerate of three-four investors, who would together hold a substantial stake in the exchange.

"The commodity exchanges should have an anchor investor which could drive the exchange towards maturity and perfection. We would not allow any one investor to hold a majority stake. Our objective is to have a diversified equity base," said B C Khatua, chairman, Forward Markets Commission, on the sidelines of a seminar organised by the Multi Commodity Exchange in Kolkata on Tuesday.

The possible stake holders could include warehouses and marketing federations, he added.

The detailed proposals for the equity-base restructuring will be submitted to the union ministry of consumer affairs, food and public distribution shortly.

The proposal is aimed at providing a 'hand' to the exchanges and participation from physical market players, according to Khatua. He did not rule out the possibility of allowing investors from specific sectors for being an anchor investor. "There will be a threshold on investors. They could be from any sector," he said.

Khatua also said the Cabinet Committee on Economic Affairs (CCEA) would take up the issue of foreign investments in commodity exchanges soon.

"We have liberalised the futures market, but it is not in tandem with the physical market. We need to push and pull to align the physical and future markets," said Khatua.