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Gargi Shah

Exchanges ambitious about opening up

Mumbai , Sept. 2

The chiefs of the two commodity exchanges — NCDEX and MCX — are open to the idea of FDI while differing on its quantum. Mr P.H. Ravikumar, Managing Director and CEO, National Commodity and Derivatives Exchange Ltd, is of the view that there should be a cap on the foreign equity investments in commodity exchanges. "If we could give them milk why give away the cow," asks Mr Ravikumar.

Mr Jignesh Shah, Managing Director and CEO, Multi-Commodity Exchange, on the other hand, looks at the proposed FDI policy as an opportunity for Indian bourses to merge with the global markets. He thinks that any delay in implementing the FDI policy may cause the exchanges missing out on the opportunity to compete globally. He is not in favour of any restriction that will deter foreign investors.

However, both these exchanges are equally ambitious about opening up the exchanges as a trading platform to the foreign traders. According to reports, the Government is expected to shortly announce a policy on FDI in stock and commodities exchanges. Speaking at a two-day conference on `Commodities as an Emerging asset class' Mr Ravikumar said that the exchange was neutral towards any class of traders so long as the integrity of the exchange was maintained.

There is a general consensus that commodities have now emerged as an asset class in India in the league of stocks, bonds, forex, real estate etc.

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More Stories on : Commodity Exchanges | Foreign Direct Investment

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Commodity exchange chiefs differ on FDI quantum

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