Reliance Money to buy 15% in HKMEx

NEW DELHI: Reliance Money, the retail brokerage arm of Reliance Capital, is buying15% stake in Hong Kong Mercantile Exchange (HKMEx). This would be the first time an Indian firm is buying stake in an overseas exchange. The deal comes at a time when the global financial markets are in a state of flux.

ET had first reported that Reliance Money was close to picking up a substantial minority stake in HKMEx, in its edition dated September 6. As reported earlier, HKMEx was keen to sell up to 26% stake to Reliance Money.

Though the deal amount could not be ascertained, sources say the transaction is being struck at around $15 million, which would value the exchange at $100 million.

Reliance Money had recently received government nod to pick up 10% in Ahmedabad-based National Multi-Commodity Exchange of India (NMCE). Reliance Money has stated that it may acquire up to 26% in NMCE.

Reliance Money CEO Sudip Bandyopadhyay confirmed the firm is buying 15% stake in HKMEx. ���There is a tremendous opportunity in developing HKMEx as a regional commodity exchange as there is no strong regional commodity bourse in Asia. Moreover, with our exposure in NMCE we would look at building synergies between the two, he said.���

The deal, will make Reliance Money the second-largest shareholder in the commodity exchange and also entitle the firm a board seat in HKMEx.