Commodity market regulator FMC has recommended giving more time to National Multi-Commodity Exchange (NMCE) to shore up capital for meeting regulatory norms.
“The Commission on January 29 recommended to the ministry (Corporate Affairs) for the grant of extension of time to NMCE
up to March 31,2013 to comply with with guidelines on the equity structure,” according to the Forward Markets Commission
(FMC). In its July 2009 guidelines on equity structure norms for five-year-old national commodity exchanges,FMC had laid down
a networth criterion of Rs 100 crore,of which equity capital had to be Rs 50 crore.
The earlier deadline for compliance with the norms was September 2011. NMCE Managing Director and CEO Anil Mishra said,”We are in the process of meeting the guidelines. Many investors have shown interest and are seeking clarity in the shareholding pattern. This can happen only after a court case between NMCE and FMC gets over.”
NMCE,last time,had received extension till March 2012 to comply the equity norms. Major shareholders in NMCE include Neptune Overseas,state-run Central Warehousing Corporation,Bajaj Holdings and Reliance Money. NMCE,known for trading in spice and plantation crops,recorded a turnover of Rs 18,923 crore in January this year.
FMC under the aegis of the Consumer Affairs Ministry oversees the functioning of six national and 16 regional commodities