NYSE Euronext to acquire 5% in MCX
The 5% equity investment is the maximum equity interest permitted to foreign investors in derivative exchanges under Indian law. Dial relatives abroad for funds
By INDIATIMES NEWS NETWORK |
MUMBAI: NYSE Euronext on Friday said it has signed a binding term sheet to acquire 5 per cent equity in the Multi Commodity Exchange, the maximum permissible under current Indian law.
The transaction is expected to be closed in the first half of 2008.
MCX provides a trading platform for precious metals, ferrous and non-ferrous metals, energy, agriculture and industrial commodities.
���We believe that our investment in MCX will produce new business opportunities for NYSE Euronext in the commodities sector and deliver value to NYSE Euronext shareholders,��� said Duncan L Niederauer, NYSE Euronext Chief Executive Officer.
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In addition to NYSE Euronext, other shareholders in MCX include State Bank of India and its associates (SBI), National Bank for Agriculture and Rural Development (NABARD), National Stock Exchange of India Ltd. (NSE), SBI Life Insurance Co Ltd, Bank of India (BoI), Bank of Baroda (BoB ), Union Bank of India, Corporation Bank, Canara Bank, HDFC Bank, Fid Fund (Mauritius) Ltd, an affiliate of Fidelity International, ICICI Ventures, IL&FS, Kotak group, Citibank, Merrill Lynch and Financial Technologies.
Currently, there are 14 corporate listings from India on NYSE Euronext markets, 12 on the New York Stock Exchange and two on Euronext, whose combined total global market capitalization exceeds $110 billion.
On July 31, 2006, MCX and Liffe, NYSE Euronext���s derivatives business, entered a licensing agreement for MCX to use Liffe futures prices, enabling MCX to list domestic ���mini��� futures contracts for both robusta and white sugar based upon Liffe futures prices and to identify other areas of potential collaboration.
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