India's leading commodity brokers will soon invade overseas markets.
The Forward Markets Commission, the apex regular on commodities market, has permitted three Mumbai-based firms to set up wholly-owned subsidiaries abroad.
They are Padmakshi Commodities Ltd, Himatlal Hirji & Co and MK Commodity Brokers Ltd.
FMC officials said the clearance to the commodity brokers will remain valid till six months from the date of issue. The commission has issued an 'NOC' last month with some pre-conditions.
One of the conditions is that the overseas subsidiary proposed to be floated should be registered with the appropriate regulatory authority of the foreign country. It should be incorporated as a separate legal entity.
Also, the said overseas subsidiary should obtain necessary approval from the respective regulators for taking up commodity related business activities.
Already, a number of leading commodity brokers have begun operations overseas, especially in the Gulf countries. Companies like JRG and Geojit have set up capital-market-cum commodity broking operations in the Gulf region.
