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.