NCDEX to Enter Mutual Funds, Equity and Derivatives Market by 2026

As per news report, NCDEX, primarily a commodity exchange, is set to diversify its portfolio by entering the mutual funds, equity and equity derivatives markets. With all regulatory approvals in place and a fund raise of ₹770 crore, the exchange plans a phased rollout starting next financial year. 

NCDEX Diversifies into Capital Market Segments 

National Commodity and Derivatives Exchange (NCDEX) is preparing to roll out mutual funds, equities and associated derivatives by 2026. The transition marks a shift from its commodity-centric offerings towards a broader financial services platform.  

As per news report, MD & CEO Arun Raste confirmed that the initial offering will be a mutual fund distribution platform, not reliant on core trading systems, targeting a launch at the beginning of the next financial year. 

He also said the funds will be used to establish its presence in capital markets. “We will primarily use it for equity and equity derivative segment,” he stated. 

₹770 Crore Raised for Capital Market Expansion 

NCDEX recently raised approximately ₹770 crore from both domestic and international investors through a preferential share issue. These funds are earmarked for developing infrastructure and technology for the new business lines.  

The exchange has started hiring and plans to onboard 150 professionals over the next year. Technology vendor finalisation is underway for the mutual fund and equity systems. 

Read More: IIFL Finance Share Price Jumps Over 2% as Board Approves Up To ₹2,000 Crore NCD Issue! 

Targeting Underserved Markets and Rural Participation 

NCDEX aims to differentiate itself by focusing beyond metro regions, tapping into Tier 2 and rural markets. Drawing from its existing relationships with farmers, it envisions investment avenues like ₹250 SIPs for rural investors. This strategy leverages its grassroots presence to broaden financial participation in smaller regions. 

International Expansion Plans in Sri Lanka 

In a move beyond India, NCDEX plans to take a 20% stake in a proposed commodities and derivatives exchange in Sri Lanka, in partnership with the Colombo Stock Exchange. The acquisition is subject to regulatory approvals in both nations. NCDEX intends to provide operational support and capacity-building for the upcoming platform. 

Conclusion 

With plans to launch mutual funds, equities and derivatives by 2026, NCDEX is entering a new growth phase. Backed by fresh funding and regulatory approvals, its focus will include rural outreach and international collaboration, indicating a strategic overhaul in its business model. 

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