Business

Commodity bourses asked to dilute excess stake

NEW DELHI: The Centre on Wednesday asked commodity exchanges to divest foreign equity exceeding the permitted ceiling of 49 per cent by June 30, 2009.

“The commodity exchanges would be required to divest foreign equity equal to the amount by which the cap was being exceeded,” a Union Commerce and Industry Ministry statement said.

According to guidelines for foreign investment in commodity exchanges, a composite ceiling of 49 per cent was allowed, comprising 23 per cent under the portfolio investment scheme and 26 per cent under the FDI scheme. However, some of the existing commodity bourses had foreign investment above the permitted level. These exchanges have been allowed a transition, complying and correction time till June 30, 2009, to comply with the guidelines, a statement from the Union Commerce and Industry Ministry said.

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