Arun Raste, Managing Director and CEO, NCDEX
The National Commodity and Derivatives Exchange (NCDEX) has secured board approval to launch a mutual fund distribution platform as part of its cash segment and plans to go live by April next year, subject to regulatory clearance from SEBI.
“We have got the board approval, and once SEBI clears it, we should be in a position to launch the platform by April,” said Arun Raste, Managing Director and CEO of NCDEX, in an interaction with businessline.
The platform, designed on the lines of BSE Star MF and NSE NMF II, will function independently of the exchange’s main trading and settlement system. “It will be a separate platform, not dependent on the trading and settlement platform. So, I don’t have to wait for the equity system to be finalised,” Raste said.
The exchange has already initiated talks with two to three technology providers and expects to finalise one by early January. The estimated investment in developing the platform is about ₹15 crore. “It’s not a major investment — the key is connecting with the right people, including AMCs, brokers and NGOs,” he added.
Small investors
The proposed platform aims to bring mutual fund investments closer to small investors, particularly in rural areas. NCDEX plans to integrate its Farmer Producer Organisations (FPOs) as sub-agents of independent financial advisers (IFAs) and brokers, enabling farmers to invest in affordable mutual fund products. “If FPOs can distribute ₹100 sets of mutual funds, it will help bring farmers into the formal financial system,” Raste said, adding that at least five of the 50-odd asset management companies are expected to participate initially.
“From the AMC’s perspective, speed is critical, while for brokers and IFAs, the ease of operation matters. If we can crack both, we can crack this business,” he said. The exchange will train FPOs to be agents of some of the brokers or IFAs… so they can onboard their customers. He expects training and onboarding to continue till April.
“This is about inclusion — financial and rural,” Raste said. “We are connecting segments that are not yet part of the formal market.”
Published on November 12, 2025