Last week, after months of scrutiny, the Forward Markets Commission, the regulator for futures trading in commodities, approved a proposal from state-owned MMTC Ltd [Get Quote] and finance-to-real estate group Indiabulls [Get Quote] to set up a national multi-commodity exchange.

The Department of Consumer Affairs is expected to give final approval over the next few weeks.

The Rs 900-crore Religare, promoted by Malvinder Singh and Shivinder Singh, former co-owners of Indian drug company Ranbaxy [Get Quote], has also reportedly held preliminary discussions on an investment in a commodity exchange as part of the finance company's footprint in the sector.

Long overshadowed by the attention-grabbing Bombay Stock Exchange and National Stock Exchange, India's commodity futures business -- led by the three national exchanges Multi Commodity Exchange, National Commodity and Derivatives Exchange and National Multi-Commodity Exchange -- has been among the world's fastest-growing.

In 2007-08, the three national commodity exchanges recorded a combined trade turnover of Rs 38,26,138 crore, just three years after India allowed commodities futures in 2003.

In the recent past, India's commodities exchanges have attracted the attention of a growing roster of blue-blooded companies and institutions from the New York Stock Exchange to Reliance [Get Quote] Money. This period of unobtrusive growth is about to end with more and more commodities being included on the trading list and the turnover projected to see a manifold jump.

Recently, Religare Technova, the holding company for the IT businesses of the promoter group, picked up 5 per cent in the Inter-connected Stock Exchange, which is promoted by 13 regional stock exchanges, including the Bangalore Stock Exchange, the Cochin Stock Exchange, the Jaipur Stock Exchange and Bhubaneswar Stock Exchange.

The Inter-connected Stock Exchange was valued at around Rs 50 crore when it was demutualised last September.

On Friday, Reliance Money, part of the Anil Dhirubhai Ambani Group, announced its intention to acquire 26 per cent in Ahmedabad-based NMCE.

Industry players said companies like Religare are more likely to acquire a stake in a regional commodity exchange, several of which are making moves to become national exchanges.

Many players are awaiting approval of Kotak Mahindra Bank's [Get Quote] proposal to acquire a majority stake in the Ahmedabad Commodity Exchange since that will lay down the policy roadmap.

Kotak had approached FMC for approval earlier this year. The corporate rush comes at a time when foreign players are looking for a slice of the pie in India.

Players like Goldman Sachs, Fidelity and NYSE Euronext have already invested in Indian commodity exchanges.

While Goldman Sachs has a 7 per cent stake in NCDEX, Fidelity and NYSE Euronext are shareholders in MCX.

"In the coming years, many more international players will invest in Indian commodities exchanges. Some of them have already held preliminary talks with Indian companies," said an FMC source.

The interest in the commodity business comes despite an unstable policy regime with the government banning trading in a host of commodities ranging from foodgrains, pulses, potato and rubber following political parties' complaints that these trades were speculative and were pushing up prices in the spot markets too.

The Centre has also been unable to push through a key legislation to empower the FMC to regulate the futures trading more effectively. At present, the regulator does not have powers to levy penalty. Similarly, it can only recommend the establishment of new exchanges, and not approve them.

But an industry player said despite the constraints, the opportunities are still huge. "There are around 100 commodities being traded in India and this will automatically generate volumes. Once mutual funds and banks are allowed to trade, the turnover will increase further helping the promoters generate good valuations," added an industry player.