RBI to issue guidelines for foreign investment in commodity bourses
07 Jun 2007
Mumbai: The Reserve Bank of India (RBI) will soon issue guidelines for foreign investors picking up stake in the country's commodity exchanges.
The norms are expected to be similar to those issued for stock exchanges, a top government official said.
"We expect that the RBI will issue necessary guidelines allowing foreign investment in commodity exchanges in another 15 days,'' consumer affairs secretary Yashwant Bhave said.
The new guidelines will allow foreign commodity bourses like the COMEX or the NYMEX to buy up to 49 per cent stake in the country's commodity exchanges like the Multi Commodity Exchange and the National Commodities and Derivatives Exchange.
The Reserve Bank had, in December last year, allowed foreign investment of up to 49 per cent in the country's stock exchanges. While the FDI cap was pegged at 26 per cent, foreign institutional investors (FIIs) were allowed to take up to 23 per cent stake. However, individual investor can hold only up to five per cent stake.
The consumer affairs ministry had sent its recommendations to the RBI regarding foreign investment in commodity exchanges about a month ago.
The new guidelines follow commodity regulator Forward Markets Commission's directive to all exchanges, after Goldman Sachs bought stake in NCDEX, not to change their shareholding pattern till guidelines were issued.
