Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
10 October, 2015 17:57 IST
NMCE gets more time to meet capital norms
Source: BUSINESS LINE | 09 Jan, 2012, 04.48PM
Comments  |  Post Comment

Commodity markets regulator FMC today said that it has given a six-month extension till March 31 for the National Multi-Commodity Exchange (NMCE) to shore up its capital to meet regulatory norms.

``NMCE has been granted an extension of time for a period of six months from Oct. 1, 2011, to March 31, 2012, for compliance with the guidelines on equity structure,`` the Forward Markets Commission (FMC) said in the statement.

In its July 2009 guidelines on equity structure norms for five-year-old national commodity exchanges, the FMC laid down a net worth criterion of Rs 1 billion, of which equity capital had to be Rs 500 million. The earlier deadline for compliance with the norm was September 2011.

NMCE currently has a net worth  equity plus reserves and surplus of Rs 650 million and an equity capital of Rs 191.2 million, the bourse`s Managing Director and CEO, Anil Mishra, said.

Expressing confidence on NCME`s ability to meet the paid-up capital norm within the revised deadline, Mishra said, ``We are in talks with domestic entities for a stake sale and we are confident of closing the deal before the deadline of March.``

The exchange will also consider rights or bonus issue to boost its capital base to meet the regulatory norms, he added.

In October 2010, NMCE sold a 12.82% stake to Bajaj Holdings and Investment for Rs 250 million towards meeting the capital requirement guidelines.

Other 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 278.26 million in December 2011.

The government permitted commodity futures trade in 2003 and the country now has 21 commodity exchanges, including five national-level bourses.

Comments Post comment 
 Post Comment
Name Email
Security Code type    into this box
Related Articles
TCI board approves demerger of subsidiary - 09-Oct-2015 19:25
Tata Motors to invest USD 2 bn in Slovak Republic - 09-Oct-2015 19:01
Suprajit Engineering acquires balance 10.88% stake in Phoenix Lamps - 09-Oct-2015 16:56
Analysts see sequential rise in Infosys Q2 earnings - 09-Oct-2015 14:57
Unichem Labs gets USFDA nod for Montelukast Sodium tablets - 09-Oct-2015 14:56
IndusInd Bank Q2 profit climbs 30% - 09-Oct-2015 14:32
Aurobindo gets USFDA nod for Aripiprazole tablets - 09-Oct-2015 13:02
Cairn India's production rises 1% in H1FY16 - 09-Oct-2015 12:57
FIIs, DIIs reduce stake in Thermax in Sept quarter - 09-Oct-2015 12:38
Reliance Sec recommends 'Buy' on Persistent Systems; target Rs 875 - 09-Oct-2015 12:04
FIIs, DIIs raise stake in Crompton Greaves in September quarter - 09-Oct-2015 11:53
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer