Reliance Money buys 15 percent stake in Hong Kong ExchangeOctober 14th, 2008 - 4:37 pm ICT by IANS
Mumbai, Oct 14 (IANS) The Anil Dhirubhai Ambani Group-promoted Reliance Money has acquired 15 percent stake in Hong Kong Mercantile Exchange (HKMEx), a top company official said here Tuesday. With this holding, Reliance Money has become the first Indian firm to buy stake in an international exchange.
“Asia has emerged as a key market for global commodities but the region does not have a strong commodity exchange,” Reliance Money director and chief executive Sudip Bandyopadhyay said.
The deal will make Reliance Money the second-largest shareholder in the commodity exchange and also entitle the firm a board seat in HKMEx.
Earlier this month, Reliance Money received approval from the ministry of consumer affairs for acquiring 10 percent stake in the National Multi-Commodity Exchange of India. The company has said it may acquire up to 26 percent in NMCE.
“We plan to build synergies between both the exchanges thereby leveraging on the growth potential of commodity trading in India, China and the rest of Asia,” Bandyopadhyay added.
HKMEx proposes to start trading in the first quarter of 2009 and will kick-start its operations by offering dollar-denominated oil contracts. It will also diversify into other commodities in the future.
Tags: anil dhirubhai ambani group, commodity trading, exchange asia, global commodities, india china, ministry of consumer affairs, multi commodity exchange, multi commodity exchange of india, nmce, oil contracts