India Pepper and Spice Trade Association (IPSTA), one of the oldest commodity futures trading exchanges of the country is setting up a subsidiary company to participate in online futures trading. The Kochi-based exchange had already filed the application with the Company Law Board (CLB) to register the new company with a proposed name of IPSTA Multi Commodity Limited.
Talking to Business Standard, Kishore Shyamji, president of IPSTA said that three names were suggested with IPSTA Multi Commodity Limited as the first choice. “We are expecting the approval from CLB within 2-3 months time,” he said.
The new company will formally tie-up with any of the leading national commodities exchange to enable trading by shareholders. He also said that though IPSTA has informal tie-ups with NCDEX and MCX, but a formal decision on the association with any of the national exchange would be taken only after the approval from the CLB. This will be decided by considering the offer packages of each exchange. Such details will be decided only at a later stage, he added.
IPSTA, set up in 1957, was registered under Section 25 of the Company’s Act and hence has restrictions on raising fund through public offer, sale of shares etc. It is also not possible to become a member of any of the national commodity exchange. A proposal for the de-mutualisation of the exchange is pending with the government.
