NSE would definitely like to venture into commodities if convergence is allowed, said Vikram Limaye, CEO, NSE.
Sources said, the Securities and Exchange Board of India (SEBI) on Thursday approved stock and commodities exchange convergence from October 2018.
Vikram Limaye, CEO, NSE said the above move if allowed is a positive move and will allow stock exchanges to start commodity bourses.
NSE would definitely like to venture into commodities if convergence is allowed, said Limaye.
Once we launch the commodities exchange we definitely hope to get a significant market share.
This move will allow an investor to have one account but the margin that you have to put up for different asset classes will be different, said Limaye, adding that right now the brokerages had to have separate accounts for trading into equities and commodities.
When asked if these procedural easing would help increase volumes for both equities and commodities, he said it should because one would want any exchange platform to trade all asset classes. Moreover, it would give members flexibility and it consolidated liquidity.
NSE market share in currency trading is north of 60 percent, said Limaye.
He said if permission is granted by SEBI then they would be ready to start it by October but of course there would be a process to follow before that.For more, watch videoGet access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.