Mumbai : The National Stock Exchange may acquire only the commodity derivatives business of the Multi Commodity Exchange of India, instead of a full merger of the two bourses, sources with direct knowledge of the matter said.
“It is logical MCX transfers only the commodity business to NSE at a valuation agreeable to all,” said a source.
Buying the MCX as a corporate entity was not possible because the NSE already has its own exchange software and need not acquire the liability of MCX towards its original promoter 63 Moons (formerly Financial Technologies (India)) which has licensed the exchange software to the commodity bourse, the source said. As per the agreement, the MCX has to pay Rs 1.5 crore a month to the promoter and variable charges of 10.3 per cent of gross transaction fees for the use of the exchange software.
Reports said the NSE and MCX have entered into merger talks ahead of the implementation of the universal exchange framework in October, which will allow exchanges to conduct equity as well as commodity trading. The two bourses plan to take the proposal to Sebi this month. NSE may look at acquiring only the commodity trading business of MCX because a merger between the bourses may face hurdles from the Competition Commission, given the dominant position of the two exchanges in their respective verticals, said the source.
