IFFCO acquires stake in Universal Commodity Exchange
22 Dec 2010
Indian Farmers Fertiliser Cooperative (IFFCO) has acquired an equity stake in the newly set up Universal Commodity Exchange (UCX).
A UCX release, however, did not state the size of the equity stake or the value of the transaction.
UCX, the latest national level multi-commodity exchange to receive government approval, is a private initiative by Mumbai-based IT People (India) Ltd.
IFFCO's participation will help UCX accelerate trading in agri-products across the country and increase trading volumes, IT People said in a statement.
IFFCO is the largest producer and marketer of fertilisers in the country with a strong team of approximately 40,000 co-operative societies representing over 50 million farmers across the country supported by 158 farmers service centres (FSC).
UCX will be a full-fledged online multi-commodity exchange for trading in futures and derivatives markets in bullion, agricultural commodities, metals, energy etc.
UCX aims to emerge one of the largest physical commodity futures exchanges ensuring price transparency and robust risk management and surveillance system for facilitating online trading, clearing and settlement operations for futures market across the country.
UCX has also sold stakes to grain marketing company Hafed and Rashtriya Chemicals and Fertilisers besides IFCI Venture Capital Fund. Netherlands-based Rabobank is also reported to have picked up a 5 per cent stake in the exchange.
