| AJAYAN
Posted online: Friday, March 09, 2007 at 0000 hours IST
KOCHI, MARCH 8:
Ahmedabad-based National Multi-Commodity Exchange (NMCE) is eyeing strategic alliances to raise Rs 100 crore through private placements route.
Exchange managing director Kailash Gupta told FE that talks were in the final stages with a foreign fund which planned to take around 9% equity stake in the exchange at the cost of around Rs 25 crore. However, these alliances would depend on necessary changes in regulations which he hoped would be in place soon.
Regarding the expansion plans, he said that these were already budgeted and outside the investments proposed through the alliances. He said the exchange was readying to enhance its network.
The Kerala model in futures trade with greater focus on delivery where all participants, including growers, were well aware of the prospects of the trade needed to be replicated across the country. This would be thrust in the exchanges expansion across the country, he added.
Already it had 55 new members and by the end of this fiscal this would be doubled, roping large companies.
About technological upgradation, he claimed that the exchange had one of the best systems though it would be improved to meet the growing needs.
On the prospects of the futures trade with the entry of big players in the retail sector, Gupta said the exchange expected several major retailers to take advantage of the futures trade in the country, especially in the agro-based commodities.
About the recent budget decision on banning futures trade in wheat and rice, he said this was the result of pressures and pulls in a coalition government. He admitted that there were some issues and with the market maturing these issues would automatically get solved. The regulatory system in the country had shifted to a new role of promotion only recently.
In a span of just over a year or two, the regulator had succeeded in putting in place a system. It had the challenging job of striking a balance between regulation and promotion and the efforts put in were remarkable, he added. |