AHMEDABAD (Commodity Online): Pioneer in the electronic commodity trade and market leader in several commodities like rubber, copra and coffee Ahmedabad-based commodity bourse, National Multi Commodity Exchange (NMCE) is looking at 400% growth in the current fiscal with focus on metals trading.

In an interaction with Commodity Online, Anil Mishra, Chief Executive Officer, NMCE said, “We have already expanded our product base to 24 commodities so far. Our current daily turnover is around Rs.900-Rs.1000 crore single-ways and about Rs.2000 crore both-ways. Last year we grew by 142% but this year, with significant volume growth coming from metals, which constitutes about 25% of our total daily volumes.”

Mishra further mentioned that the exchange has also started evening trading sessions with a view to increase membership base by offering trading opportunity in metals especially in the international market. “We are the only exchange that offers investment opportunity in gold to our retail investors by our gold guinea contract. We have clogged about Rs.30 crore daily turnover with steadily growing volume,” said Mishra.



Speaking about attracting more membership, Mishra said, “We create value for all our stakeholders, be it hedgers or investors. We provide safety and security of investment to our members. In order to further increase our membership base, we are looking at adding a few more metals contracts to our product kitty.” The company is said to have identified a partner to set up the supply chain.

In compliance with the regulatory requirements, the commodity bourse will raise funds to increase its paid-up equity capital from Rs.16.7 crore to either Rs.50 crore or even Rs.100 crore, which is a requirement for a bourse that has completed five-years of operations. Mishra said, “We are in to consideration of several options including a fresh equity issue to domestic and foreign investors, rights issue, public issue or private equity or any combination of the same. By 30th of September we intend to come up with the issue.”

Anil Dhirubhai Ambani Group (ADAG) promoted, Reliance Money has acquired a 10% stake in the exchange for over Rs.10 crore. Other stake holders includes Central Warehousing Corporation and Neptune Overseas, which holds about 50% stake in the exchange besides PNB, Gujarat State Agricultural Marketing Board, Gujarat Agro Industries Corporation (GAIC) and National Institute of Agri Marketing.

In its guidelines on equity structure of existing commodity bourses, regulator Forward Markets Commission (FMC) has said that after 5 years of operation a commodity bourse should have a paid-up equity capital of at least Rs.50 crore.

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