NYSE Euronext is taking a 5% stake in India’s Multi Commodity Exchange (MCX).

The firm announced today that it has signed a binding term sheet to acquire a 5% equity position in the MCX, subject to certain conditions. The equity investment is the maximum equity interest permitted by foreign investors in derivative exchanges under current Indian law. Closing of the transaction is expected to take place during the first half of 2008, subject to all relevant regulatory approvals.

Founded in 2003, the MCX is a commodity exchange that trades precious metals, ferrous and non-ferrous metals, energy, agriculture and industrial commodities.

“We believe that our investment in MCX will produce new business opportunities for NYSE Euronext in the commodities sector and deliver value to NYSE Euronext shareholders,” said Duncan Niederauer, NYSE Euronext CEO, in a release. “This transaction underscores our long-standing commitment to India and is consistent with our strategic business goal of aligning NYSE Euronext with partners globally and diversifying our product portfolio.”

In addition to NYSE Euronext, other shareholders in MCX include: State Bank of India and its associates, National Bank for Agriculture and Rural Development, National Stock Exchange of India Ltd., SBI Life Insurance Co. Ltd., Bank of India, Bank of Baroda, Union Bank of India, Corporation Bank, Canara Bank, HDFC Bank, Fid Fund (Mauritius) Ltd. – an affiliate of Fidelity International, ICICI Ventures, IL&FS, Kotak group, Citibank, Merrill Lynch and Financial Technologies.