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BSE may allow members to trade in commodities
Rajesh Bhayani in Mumbai
 
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February 25, 2008 09:00 IST

The Bombay Stock Exchange is considering a proposal to allow trading in commodity futures on approximately15,000 terminals of its members, following its recently concluded  acquisition of 26 per cent in the Ahmedabad-based National Multi Commodity Exchange.

BSE managing director Rajnikant Patel said this was one of the possibilities that would be considered in due course.

The exchange was upgrading hardware and processing capacities by two or three times and introducing an integrated platform for equity, futures and options, commodities and bond trading.

"There could be technological and network integration between the two exchanges. Eventually, apart from multi-segment, multi-exchange trading will also be possible," added Patel, who is also on the NMCE board.

The NMCE and the BSE are also trying to increase the horizon of commodity contracts, which can be traded on the former exchange's platform since it currently derives most of its turnover from plantation commodities.

The BSE has also deputed a senior official, S S Vyas, as the NMCE chief operating officer.

BSE invested in a fresh equity issue by the NMCE. Other shareholders like Central Warehousing Corporation, which holds 26 per cent, also pumped in more money to maintain their shareholding.

Overall, the exchange has raised around Rs 100 crore (Rs 1 billion) by way of fresh sale of equity over the last few months.

In the process, said a source familiar with the development, the stake of the promoters, Kailash Gupta and associates, is expected to come down to 18 per cent.

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