NCDEX receives SEBI’s in-principle approval to launch mutual fund platform

NCDEX today announced that it has received in-principle approval from SEBI to launch a Mutual Fund (MF) transaction platform. The initiative is designed to serve as a natural precursor to the launch of the equity and equity derivatives segment, according to a press release.

Mutual fund transactions operate independently of equity trading systems, and NCDEX is well-positioned to roll out the platform with a significantly shorter turnaround time. National Commodity Clearing Limited (NCCL), a wholly-owned subsidiary of NCDEX, will be responsible for clearing and settlement of MF subscription and redemption orders, the release said.

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“Introducing a Mutual Fund platform ahead of our equity launch is both a strategic and timely decision,” said Dr Arun Raste, MD and CEO, NCDEX.

Raste further 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 key objectives of the proposed MF platform include expanding financial inclusion by offering micro-SIPs in rural and underserved areas, aligned with SEBI and Government priorities; channelising rural savings into safe, regulated and productive investment options; creating a strong cash-market base ahead of the Exchange’s equity segment launch; supporting existing trading members with an additional business opportunity in a subdued trading environment; and driving new member onboarding with a simple, high-value product that is easy to adopt and scale.

The move aligns with regulatory intent to deepen the equity segment. Mutual Funds provide an accessible starting point for households with modest surplus income, allowing smaller investments. With diversification benefits and professionally managed portfolios, investors can participate in market-linked growth while transacting through an exchange-operated, SEBI-regulated system.In November, India’s National Commodity and Derivatives Exchange (NCDEX), an online marketplace for agricultural commodities, secured board approval to launch an electronic platform for mutual fund distribution.

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In August, NCDEX secured preliminary approval to introduce trading in equity-linked products, including derivatives, as part of its plan to expand its offerings and compete more directly with India’s leading stock exchanges.

Established in 2003, NCDEX is a SEBI-regulated stock exchange recognised as India’s leading commodity exchange, creating transparent benchmarks in key agricultural commodities.