After news that a group led by Universal Commodity Exchange (UCX) was keen to pick up stake in Multi-Commodity Exchange (MCX), it has emerged that the Bombay Bullion Association (BBA) will also be part of the consortium.
Ketan Sheth, Chairman of UCX said that the chairman of the BBA had approached UCX requesting to be part of the consortium and that he was open to the idea. It is, however, not clear whether an association that trades on an exchange could be allowed to own stake in it.
UCX, the sixth player in the commodity futures market, has approached the FMC proposing to buy the 26 percent stake of Financial Technologies India Ltd (FTIL) in MCX, and said it would merge the two exchanges.
MCX is the largest commodity exchange in the country while UCX is relatively a small player.
Also read: State-backed UCX eyes FTIL's stake in MCX
This follows the recent order of the Forward Markets Commission asking Jignesh Shah and his firm FT, which owns 26 percent in MCX, to reduce stake in the bourse as they were found to not be “fit and proper” to run any exchange.
Shah is under fire for alleged wrongdoing at the National Spot Exchange, also run by FTIL, in which a Rs 5,500-crore payments scam was uncovered in July.
Shah has contested the FMC’s order in the Bombay High Court.
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