Crisil sells 7% stake in NCDEX to Shree Renuka Sugars

NEW DELHI: With barely a fortnight left for a deadline to cut its stake in commodity bourse NCDEX to 5 per cent, rating agency Crisil has sold 7 per cent in the bourse to Shree Renuka Sugars.

"Crisil has sold 7 per cent of its stake in NCDEX to Shree Renuka Sugars," Forward Markets Commission (FMC) Chairman BC Khatua told reporters here.

Following this, the holding of Shree Renuka Sugars has gone up to 12 per cent, from five per cent, he said.

"Shree Renuka sugars exercised its right of first refusal and purchased 7 per cent stake of Crisil in NCDEX," Khatua said.

Crisil, which had 12 per cent stake in NCDEX, had to reduce it to 5 per cent by September as per the guidelines of the Department of Industrial Policy and Promotion (DIPP).

The government has made it must for any foreign entity to limit its stake in a commodity exchange to five per cent. Crisil is the Indian arm of global ratings agency Standard & Poor's.

Earlier this year, Fidelity reduced its stake in MCX from 9 per cent to 5 per cent to meet the DIPP norms.