Two commodity exchanges merge

NMCE-ICEX union to create third-largest commodities exchange in the country

July 03, 2017 09:35 pm | Updated 09:42 pm IST - CHENNAI

Swap deal: ICEX shareholders will hold 62.8% stake and NMCE shareholders the rest, post merger.

Swap deal: ICEX shareholders will hold 62.8% stake and NMCE shareholders the rest, post merger.

National Multi Commodity Exchange (NMCE), India’s first de-mutualised online national multi-commodities exchange, will merge with the Indian Commodity Exchange (ICEX).

The boards of the two exchanges have approved the merge move, said a joint press release. The proposed merger will create the country’s third-largest commodities exchange.

Swap ratio

As per the agreed swap ratio, ICEX shareholders will hold 62.8% stake and NMCE shareholders 37.2% stake in ICEX, post merger, which is subject to required regulatory approvals. The merger is expected to be completed by December 2017.

The merged entity will have prominent shareholders from both exchanges, including MMTC, Indian Potash, Krishak Bharti Cooperative (Kribhco), IDFC Bank, Indiabulls Housing Finance, Reliance Capital, Bajaj Holdings, Central Warehousing Corporation, Punjab National Bank and Gujarat Agro Industries.

“The merger will help ICEX to further strengthen its position in the commodity derivatives market in India,” said Sanjit Prasad, MD and CEO of ICEX. “The large base of warehousing facilities of CWC with storage capacity of 9.89 million tonnes will become available to the combined entity pan India, which will help generate more liquidity due to wider participation of the larger base of active members of the combined entity,” said Anil Mishra, MD & CEO, NMCE.

ICEX is a deemed recognised stock exchange providing a nationwide online trading platform in commodity derivatives. It has put in place assaying and warehousing facilities in order to facilitate deliveries. Reliance Capital is its largest investor.

NMCE is the first de-mutualised, online multi-commodity exchange in India, set up in October 2002.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.