Kotak group Launch ACE for commodity futures Exchange

Kotak group has launched its online commodity exchange ACE Derivatives and Commodity Exchange on Tuesday offering futures contracts in castor, soyabean, soya oil, rapeseed and chana.

With a major focus on agriculture, ACE will become the latest entrant to compete against NCDEX, MCX, NMCE and ICEX. Apart from the Kotak group, the other shareholders in ACE include Hafed, Bank of Baroda, Corporation Bank, Union Bank. Currently, Kotak group owns 51 per cent stake in ACE.

Inaugurating the exchange, the Haryana Chief Minister, Mr Bhupinder Singh Hooda, said the new exchange will help professionalise the role of intermediaries so that both farmers and consumers benefit in the long run.

?A growing Indian economy needs more and more commodities like metals, energy and agricultural commodities to drive the economic engine. Therefore, trading in commodities is bound to increase,? he said.

To begin with, ACE will have 230 registered members and will charge a deposit of Rs 8 lakh and fee of Rs 2 lakh for a member. A transaction charge of Re 1 for every Rs 1 lakh trade will be levied on all trades. The exchange has filed with market regulator FMC for launching trading in nine new commodities and received approval for gold, silver, crude and copper, said Mr Dilip Bhatia, CEO, ACE. Trading on the exchange will commence trading on Wednesday.

Speaking on the occasion, Mr Uday Kotak, Executive Vice-Chairman and Managing Director, Kotak Mahindra Bank, said, ?Exchanges are a crucial component of financial infrastructure. We believe that a robust and modern exchange focused on multiple commodities can bring about a transformation to the inclusive benefit of all stakeholders across the nation.?

As a financial services institution, with requisite resources, relevant management competence, commitment and governance standards, Kotak would like to contribute to the growth of ACE and prosperity of the stakeholders, he added.