BUSINESS

3 banks to take stake in MCX

MUMBAI, JUNE 1. The Multi Commodity Exchange of India (MCX) today announced that three leading nationalised banks, Union Bank of India (UBI), Bank of India (BoI) and Corporation Bank have given their in-principle approval to pick up equity stake in the exchange.

According to MCX, the equity stake is not with a purpose of securing investments or realising money flow in its financial books but is rather a strategic partnership where all stakeholders look forward to it as a means to establish a thriving market for commodities.

Each bank has taken up a 2 per cent stake in the equity of MCX. Cherian Varghese, CMD, Corporation Bank, said, "We are picking up 2 per cent stake in MCX. Since it is a new opportunity with great potential, we are going to increase our presence in the commodity business in the near future."

In addition to taking stake in the equity of MCX, the banks have also decided to take up the professional clearing membership on the exchange.

With this membership in place, these banks will offer clearing functions to the trading members of MCX.

Our Staff Correspondent