ADAG eyes 26% in ICEX, Jaypee may buy into NCDEX | business | Hindustan Times
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ADAG eyes 26% in ICEX, Jaypee may buy into NCDEX

business Updated: Aug 19, 2010 02:07 IST

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The Forward Markets Commission is considering a stake sale proposal from Indiabulls Financial Services in the Indian Commodity Exchange (ICEX) to Reliance Money, and Jaypee Capital's plan to buy into National Commodity and Derivatives Exchange (NCDEX).

Reliance Money, part of the Anil Dhirubhai Ambani Group, is likely buy 26 per cent stake in ICEX from Indiabulls, two Indiabulls executives said on conditions of anonymity.

"Yes Indiabulls has approached us...they want to surrender their anchor investor status to Reliance Money," B.C. Khatua, chairman, FMC, said on Wednesday.

ICEX Managing Director and CEO Ajit Mittal also confirmed talks with Reliance Exchange Net, but said that nothing has been finalised yet. "There have been some discussions with Reliance Exchange Net and Indiabulls with regard to a possible strategic alliance, to capitalise in the synergy for the development of the agri business on the ICEX platform. However, nothing is final."

However, sources said that Indiabulls has already agreed to the sale and the issue is likely to come up for discussion on Thursday at a board meeting of ICEX, where nominees of MMTC would also be present.

Indiabulls holds 40 per cent in ICEX, which started operations less than a year ago and was founded by the company with MMTC. It later roped in other investors including Indian Potash, Kribhco and Infrastructure Development Finance Co.

"FMC is considering a proposal from Jaypee Capital Services for acquisition of 26 per cent anchor investor stake in NCDEX," Khatua said.

At present, the country has four commodity bourses – National Commodity and Derivatives Exchange, Multi-Commodity Exchange, National Multi-Commodity Exchange, and ICEX.