Kotak Bank to fund Ace traders

Ace Derivatives and Commodity Exchange today launched a facility, ComFin, to enable seamless financing of commodity deliveries in collaboration with Kotak Mahindra Bank.

“We are delighted to provide this facility to our members and clients. ComFin will address the latent need of funding requirement and will help market participants transact and take or deliver commodities on the exchange efficiently and seamlessly,” Ace Derivatives and Commodity Exchange Chief Executive Mr Dilip Bhatia told reporters here.

The Kotak Group is the majority stake holder in the exchange, which was earlier known as Ahmedabad Commodity Exchange. Ace has completed one year of operations.

The ComFin platform will bridge the gap of short-term funding offer availability. Under the tie-up, Kotak Bank will provide funding to eligible market participants for taking deliveries.

“This is a welcome move by Ace that will help grow the market. It will aid market participants to avail seamless financing and in the longer run help small traders and farmers trade and deliver on the exchange,” Forward Markets Commission Chairman Mr Ramesh Abhishek said.

Kotak Bank President (Commercial Banking) Mr Narayan S A said, “this tie-up is a sustainable model for closer integration of the exchange with its members and clients and is a proof of our commitment to offer high quality banking products and services.”