Fidelity to sell 2 percent in India commodity bourse

MUMBAI (Reuters) - Global fund manager Fidelity International is selling around 2 percent of its holding in India's largest commodity bourse to meet a regulatory cap of 5 percent for any single foreign shareholder, the Economic Times said.

Intel Capital (Mauritius), an investment arm of chipmaker Intel Corp (INTC.O), is the buyer of the stake in Multi Commodity Exchange of India, the newspaper reported on Monday, citing an unidentified person familiar with the matter.

"Fidelity is planning to sell part of its stake in MCX to Intel Capital," the paper quoted an unnamed official from commodity futures regulator Forward Markets Commission as saying.

"FMC has received an application for such a proposal a few days ago," the official said.

It did not give financial details.

The deadline for foreign investors to bring down their stake to 5 percent in commodity exchanges is March 31, the paper said.

Fidelity, which held about 9 percent through an affiliate Fid Fund (Mauritius) Ltd, had earlier divested 2 percent to Passport India, taking the latter's holding to 5 percent, the paper said.

"We don't comment on Fidelity's holdings," the fund house told the paper.

"As a matter of policy we do not comment on rumors/speculation nor do selective disclosures and we have no comment to offer at this point of time," a MCX spokesman told the paper.

(Writing by Janaki Krishnan; Editing by Ranjit Gangadharan)