MCX looking for stake buys in Indian, foreign cos

[Sukumar]

The Multi-Commodity Exchange of India Ltd (MCX) is likely to buy
strategic stake in companies within and outside India, it said in the
offer document filed with the regulator for its proposed initial
public offering.

The company intends to use Rs 2500 crore, part of its proceeds from
the IPO, for such stake buys and acquisitions before the end of fiscal
2010, MCX informed the Securities and Exchange Board of India.

The company also intends to use Rs 100 crore from the expected
proceeds for setting up a clearing corporation by the end of the
fiscal year 2008/09.

Forward Markets Commission, the commodity futures markets regulator,
allowed MCX on January 28, 2008 to set up a clearing corporation as a
wholly-owned subsidiary.

NYSE Euronext, the parent of New York Stock Exchange, agreed to buy a
5 per cent stake in MCX for $55 million on February 15, valuing the
bourse at $1.1 billion.

MCX, which has 75 per cent share of the total trade turnover in
India's 24 commodity exchanges, is promoted by software firm Financial
Technologies India Ltd.