COMMODITY EXCHANGES ASKED TO DILUTE FOREIGN EQUITY EXCEEDING 49%

The government has directed all commodity exchanges to divest foreign equity exceeding the
permitted ceiling of 49% by June 30, 2009. According to guidelines for foreign investment in commodity INSURANCE exchanges, a composite ceiling of 49% is allowed, comprising 23% under portfolio investment and 26% under FDI route. The direction by the Department of Industrial Policy and Promotion (DIPP) forms part of Press Note 2 of 2008.