Reliance, Axis Mutual Funds get nod to raise stake in MCX upto 5%

NEW DELHI: Commodity market regulator FMC has allowed Reliance and Axis mutual funds to increase their stake in Multi-Commodity Exchange (MCX) to up to 5 per cent each.

According to the shareholding pattern, Reliance Mutual Fund had 2.16 per cent and Axis Mutual Fund had 1.95 per cent stake in the country's largest commodity exchange MCX as on December 31, 2014.

Both the funds had separately approached Forward Markets Commission (FMC), seeking approval to raise their stake in MCX, as per the revised shareholding norms issued by the Commission in May last year.

"Forward Markets Commission (FMC) has conveyed its approval to Reliance Mutual Fund and Axis Mutual Fund for acquisition of shares up to 5 per cent of equity share capital of MCX," the commodity exchange said in a BSE filing.

The regulator has also directed Reliance and Axis to file a declaration to MCX, stating that they comply with the fit and proper criteria. The declaration should be filed withing 15 days from the end of financial year.

In August last year, Jignesh Shah-led Financial Technologies ( FTIL) had exited the country's largest commodity exchange MCX by selling its residual 5 per cent stake in the bourse.