NCDEX preferential issue likely by Oct-end | business | Hindustan Times
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NCDEX preferential issue likely by Oct-end

business Updated: Oct 10, 2010 10:20 IST

The National Commodity and Derivatives Exchange (NCDEX) is likely to float a preferential issue by October-end to raise its paid-up equity capital by Rs 12.50 crore to Rs 50 crore, a top exchange official said.

"We are raising our equity capital from the current Rs 37.50 crore to Rs 50 crore through a preferential issue, which will be offered soon," NCDEX's Chief--Corporate Services, Anant Kumar, told PTI in Mumbai.

Commodity market regulator Forward Markets Commission (FMC) had given extension of three to six months to commodity exchanges to comply with equity structuring and ownership guidelines.

The deadline to comply with norms for equity restructuring, networth and ownership as per new guidelines, expired on September 30.

According to the new guidelines, commodity bourses have to raise paid-up equity capital of minimum Rs 50 crore. The original promoters of the exchange are permitted to hold up to a 26 per cent stake in the exchange. NCDEX had a net worth of Rs 69 crore and paid-up equity of Rs 30 crore.

The exchange had come out with a rights issue of Rs 110 per share to increase its net worth last year, Anant Kumar said.