Reliance Money is moving fast on getting into the commodity exchange business. The Anil Ambani-owned Reliance Money said that it has received official approval to pick up 10 per cent stake at the National Multi Commodity Exchange (NMCE).
Reliance Money had proposed to buy a strategic 26 per cent stake in NMCE, the third largest national commodity exchange based in Ahmedabad. NMCE had inducted Reliance Money chief executive officer Sudip Bandhopadhyay as a director in the exchange board.
The apex commodities market regulator Forward Markets Commission (FMC) had forwarded the Reliance Money proposal to buy 26 per cent stake in NMCE to the Consumer Affairs Ministry that oversees commodity futures trading in India.
Officials said the Ministry has approved only 10 percent stake acquisition by Reliance Money in NMCE. “Allowing Reliance Money to pick up 26 per cent stake in NMCE would have meant the exchange divesting majority stake to Reliance. Since Reliance Money is also a top stock and commodity trading company, the Ministry did not want to avoid the tricky situation of the company owning majority stake in NMCE,” the official told Commodity Online.
Reliance Money, a subsidiary unit of financial services company Reliance Capital Ltd, part of the Anil Dhirubhai Ambani group, on Tuesday announced its foray into investment banking services.
Source:Commodity Online