This Article is From Aug 30, 2015

MMTC Keen to Sell its Stake in Indian Commodity Exchange

MMTC Keen to Sell its Stake in Indian Commodity Exchange

New Delhi: State-owned MMTC is looking for investors to sell its 26 per cent stake in the commodity bourse Indian Commodity Exchange (ICEX), which wound up its operations towards the end of 2013.

Besides, commodities markets regulator Forward Markets Commission (FMC) has also issued a show-cause notice to ICEX to scrap its registration because no business has been generated on the exchange since December 2013.

"MMTC intends to divest all or part of its 26 per cent equity shareholding in ICEX. We have already invited expression of interest," a senior MMTC official said.

MMTC has invited bids for purchase of a minimum 20 lakh shares (equivalent to 1 per cent shareholding in the bourse) at a minimum reserve price of Rs 10 a piece, he said.

Currently, MMTC holds 5.20 crore equity shares in ICEX at a face value of Rs 5 each.

The trading agency has appointed YES Securities (India) Limited to advise on the proposed transaction.

MMTC is planning to divest stake in ICEX as it is not interested to infuse more funds to increase the net worth of exchange to meet the regulatory norms.

ICEX does not have sufficient net worth and requires infusion of funds from existing shareholders as well as investment from fresh shareholders.

During the end of 2013, the ICEX had decided to wind up operations and trading was accordingly suspended on December 24, 2013 after the business volumes got affected due to several factors including imposition of commodity transaction tax and the Rs 5,500 crore payment scam at NSEL.

Other stakeholders in ICEX include: R Next has 26 per cent, IBFSL and Abhinay Trading Corporation have 14 per cent each, Indian Potash Limited has 10 per cent, while KRIBHCO and IDFC hold five per cent each in the exchange.