Reliance Exchange next (R Next), a subsidiary of Reliance Capital, said on Monday it had acquired a 26 per cent stake in the Indian Commodities Exchange (ICEX). The Anil Ambani-controlled firm thus took a key foothold into the commodity futures exchange business.
ICEX faces tough competition with two existing players, the Muti Commodity Exchange and the National Commodity and Derivatives Exchange Ltd.
While MCX (promoted by the Financial Technologies) has been in operation since November 2003 and has a claimed market share of over 80 per cent of the Indian commodity futures trading market, NCDEX promoted by ICICI Bank, LIC, the National Bank for Agriculture and Rural Development (Nabard) and the National Stock Exchange (NSE) has been operational since December 2003.
R Next has been inducted as an anchor investor in the exchange following the regulatory approvals. ICEX, which was promoted by Indiabulls Financial Services and MMTC will see a change in its promoter as R Next has bought its stake Indiabulls Financial Services.
“We see a huge potential in the commodity market space. With this, we plan to develop a transparent national electronic commodity market place,” said Rajnikant Patel, president & CEO, R Next.