A Strategic On-Ramp Ahead of Its Equity and Equity Derivatives Foray

The National Commodity & Derivatives Exchange (NCDEX) today announced that it has received in-principle approval from the Securities and Exchange Board of India (SEBI) to launch a Mutual Fund (MF) transaction platform, marking a significant milestone in the Exchange’s phased expansion into the equity and equity derivatives segment.

The proposed MF platform is positioned as a natural precursor to NCDEX’s equity ambitions. By enabling low-denomination investments and micro-SIPs, the platform is designed to expand financial inclusion in rural and underserved regions, channelise household and agrarian savings into safe, regulated and productive investment avenues, and offer first-time investors an accessible entry point into market-linked instruments. At the same time, it is expected to create a strong cash-market foundation ahead of NCDEX’s equity segment launch, support existing trading members with an additional and stable business opportunity in a subdued trading environment, and drive new member onboarding through a simple, scalable and high-value product offering.

As mutual fund transactions operate independently of equity trading systems, NCDEX is well-positioned to roll out the platform with a significantly shorter turnaround time, leveraging its existing institutional infrastructure. National Commodity Clearing Limited (NCCL), a wholly owned subsidiary of NCDEX, will be responsible for the clearing and settlement of MF subscription and redemption orders, ensuring robust risk management and regulatory compliance.

For rural and semi-urban communities, the MF platform represents a structural shift in how savings are mobilised and wealth is created. By lowering entry barriers through micro-SIPs and offering an exchange-operated, SEBI-regulated framework, the platform provides rural households—particularly farmer families and small entrepreneurs—with a formal pathway to move surplus income from cash, gold or informal instruments into transparent, professionally managed financial products. Over time, this can help improve financial resilience against income volatility arising from weather shocks, price cycles and employment uncertainty, while introducing rural savers to diversified, equity-linked instruments as a hedge against agricultural risk. The initiative is also expected to strengthen local financial ecosystems by expanding the role of authorised intermediaries and building long-term trust in formal capital markets beyond metropolitan centres.

Commenting on the development, Dr. Arun Raste, Managing Director & CEO, NCDEX, said,

“Introducing a Mutual Fund platform ahead of our equity launch is both a strategic and timely decision. Mutual Funds are among the simplest and safest entry points for new investors, and this is where Bharat’s equity journey truly begins. NCDEX’s MF platform will play a pivotal role in mobilising rural and semi-urban savings into productive, regulated avenues while creating a strong pathway for deeper equity participation. With low-denomination SIPs and a secure, exchange-led infrastructure, we move one step closer to delivering a truly multi-asset platform for Bharat.”

The initiative aligns closely with SEBI’s broader regulatory intent to deepen equity participation across income segments. By combining diversification benefits, professional fund management and the assurance of an exchange-led settlement framework, the proposed MF platform positions NCDEX as a long-term enabler of inclusive capital market growth and a critical bridge between rural savings and India’s evolving equity economy.