The department of consumer affairs is planning to put a ceiling on the stake that a single domestic investor can hold in a commodity exchange.

The guidelines for domestic investors are being worked on even as the norms for foreign direct investment in commodity exchanges are being given finishing touches.

The cap on a single investor would mean some entities having to divest their stake within a reasonable timeframe.

Sources in the consumer affairs department said the move is aimed at diversifying the ownership of exchanges.

"We will keep in mind the holding pattern in the mainline national exchanges while fixing the cap," they said.

Analysts said this means that the cap on a single domestic investor would not be as stiff as that in stock exchanges, which have a 5 per cent cap on a single entity.

The guidelines for FDI in commodity exchanges, however, are expected to put a 5 per cent cap on a single investor under the total foreign investment limit of 49 per cent - 26 per cent for FDI and 23 per cent for foreign institutional investors, which can be invested only through the secondary market.

Since a single foreign entity will not be able to hold more than a 5 per cent stake, Fidelity, which holds 9 per cent in the Multi Commodity Exchange of India, and Goldman Sachs, which holds 7 per cent in National Commodity & Derivatives Exchange, will have to reduce their stake. It is believed they will get 18 to 36 months to divest.

Industry players have been critical of the huge delay in announcing the foreign investment norms. "In stock exchanges, even share allotment to foreign investors is over. There is no reason why the government should delay announcing the norms for comexes," they said.

The country's three leading commodity exchanges have been in negotiations with their global counterparts for a possible stake sale.

While the Chicago Mercantile Exchange and the New York Mercantile Exchange are each expected to pick up a 5 per cent stake in MCX, the US-based Intercontinental Exchange is in talks with NCDEX.

Ahmedabad-based National Multi-Commodity Exchange is also looking at a strategic partner and is in talks with various international and domestic exchanges. The Bombay Stock Exchange is believed to be one of the contenders.

The Forward Markets Commission had frozen the equity pattern/holding of all commodity exchanges a few months ago as the FDI guidelines were being prepared.