RBI to Issue Directives for FDI/FII Stake in Commexes

June 8, 2007	(1 votes, average: 5 out of 5)  Loading ...
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The Reserve Bank of India (RBI) may soon come up with new guidelines for allowing foreign investors to acquire stake in the country’s commodity exchanges within a fortnight.

The directives to be issued by the apex bank are likely to be similar to those issued for stock exchanges, says Yashwant Bhave, consumer affair secretary.

It means that cross-border investors such as New York Mercantile Stock Exchange will be allowed to purchase up to 49% stake in bourses like Multi Commodity Exchange and NCDEX.

In December 2006, the guidelines released by the RBI had allowed foreign investment up to 49% in stock exchanges. While the FDI cap was pegged at 26%, foreign institutional investors (FIIs) were allowed to acquire up to 23% stake. Contrary to this, individual investors can buy only up to 5% stake.

Bhave has sent a few suggestions to RBI concerning foreign investment in commodity exchanges a month ago.

Forward Markets Commission, a regulatory authority which is overseen by the Ministry of Consumer Affairs and Public Distribution, Govt. of India, had asked all exchanges not to change their shareholding pattern till the concerned directives are issued.

News Published Under:   Foreign Direct Investment in India |