A key regulatory clearance has set the stage for the next phase of expansion at the commodity exchange.
NCDEX has received preliminary approval from SEBI to launch a mutual fund transaction platform, marking an important step ahead of its planned entry into equity and equity derivatives trading. The exchange said the initiative is designed as a natural lead up to its equity segment rollout.
Mutual fund transactions function independently from equity trading systems, allowing NCDEX to introduce the platform with a much shorter turnaround time. Clearing and settlement of mutual fund subscription and redemption orders will be handled by National Commodity Clearing Limited, a wholly owned subsidiary of NCDEX.
“Introducing a Mutual Fund platform ahead of our equity launch is both a strategic and timely decision,” said Dr Arun Raste, MD and CEO of NCDEX. He added, “Mutual Funds are among the simplest and safest starting points for new investors, and we believe this is where Bharat’s equity journey truly begins. NCDEX’s MF platform will play a pivotal role in moving rural and semi urban savings into productive, regulated avenues and creating a strong pathway for deeper equity participation. With low denomination SIPs and a secure exchange led infrastructure, it brings us one step closer to delivering a multi asset platform for Bharat.”
The proposed platform aims to expand financial inclusion by offering micro SIPs in rural and underserved regions, in line with SEBI and government priorities. Other objectives include channelising rural savings into regulated investment options, building a strong cash market base before the equity launch, supporting existing trading members with new revenue opportunities during a subdued trading environment, and enabling faster onboarding of new members through a simple and scalable product.
The move also aligns with regulatory efforts to deepen equity participation in India. Mutual funds offer households with modest surplus income an accessible entry point into market linked investments, supported by diversification and professional management within a SEBI regulated exchange framework.
In November, NCDEX had secured board approval to launch an electronic platform for mutual fund distribution. Earlier, in August, it received preliminary approval to introduce trading in equity linked products, including derivatives, as part of its broader expansion strategy.
Founded in 2003, NCDEX is a SEBI regulated exchange and is widely recognised for setting transparent benchmarks in key agricultural commodities.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
