UCX is a new addition to the list of commodity exchanges in the country. It will be a full fledged, online multi-commodity exchange for futures & derivatives markets across all commodity segments. The exchange is promoted by IT People, a Ketan Sheth-promoted company that provides software solutions to capital and commodity markets.
This evolution happened after the resignation of the recently-appointed chief executive of UCX, Samir Shah, on Tuesday.
IDBI Bank is a promoter of country's leading stock exchange - National Stock Exchange (NSE), National Securities Depository Limited (NSDL) and Stock Holding Corporation of India Ltd. (SHCIL).
"The idea behind acquiring equity is to push agricultural loan through this venture," IDBI bank's Chairman and Managing Director R.M. Malla, said to the newspaper.
According to SEBI norms, a commodity exchange needs to have a minimum capital of Rs 100 crore. Sheth holds currently 40% in UCX, which he has to reduce to 26% within five years of its operations.
Indian Farmers Fertiliser Cooperative (IFFCO) is Sheth's major partner with 15% stake in UCX.
UCX received in-principle approval from the commodity futures market regulator, Forward Markets Commission (FMC), in August last year. The bourse is likely to launch in September, however it is not yet confirmed by the promoter.
This will become the country's sixth commodities futures exchange. The five national exchanges include MCX, NCDEX, NMCE, ICE & IMCE accounted for nearly the whole of the Rs 120-lakh crore turnover in FY 11, a 54% growth from the preceding financial year.