Fidelity, Goldman Ordered To Reduce India Exchange Holdings
Last update: 1/31/2008 12:34:21 PM
NEW DELHI (Dow Jones)--Fidelity International and Goldman Sachs (GS) must reduce their holdings in two Indian commodity exchanges following a federal government decision to limit foreign participation by individual investors in such exchanges to 5%, a senior government official said late Thursday.
At present, Fidelity holds around 9.24% in India's largest commodity exchange by turnover, Multi Commodities Exchange, which it bought for $49 million.
Goldman Sachs holds around 7% of National Commodity and Derivatives Exchange. It bought the stake for $23.1 million.
"This will reduce cartelization and concentration of power with few companies," Federal Consumer Affairs Secretary Yashwant Bhave told Dow Jones Newswires.
Earlier this week, India isssued the rules for foreign investment in commodity exchanges. It allowed foreign direct investors overall to buy up to 26% and foreign institutional investors up to 23% in such exchanges.
However, it limited individual foreign holdings to 5%.
-By Sanjeeb Mukherjee, Dow Jones Newswires; 91-11-2307 4020; gurdeep.singh@dowjones.com
(END) Dow Jones Newswires
January 31, 2008 12:34 ET (17:34 GMT)
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