#NCDEX #MultiAssetExchange #EquityMarkets #MutualFunds #FinancialInclusion #AtmanirbharBharat #CapitalMarkets #SEBI #FintechIndia #CSEDEX #SriLanka
MUMBAI: — The National Commodity and Derivatives Exchange (NCDEX), India’s leading agricultural commodity bourse, is set to undergo a fundamental transformation, announcing a major strategic pivot to become a comprehensive multi-asset exchange. The company is actively preparing to launch new segments covering mutual fund distribution, equities, and equity derivatives, with operations expected to be fully functional by the next calendar year or the latest by the end of the next financial year (FY 2026-27).
This ambitious expansion, which will see NCDEX directly compete with market giants like BSE and NSE, follows a successful capital infusion of approximately ₹770 crore (around $92 million). The funds were secured through a preferential share issue from a diversified pool of 61 domestic and global investors, including prominent institutional players, financial partners, and HNIs, signaling strong confidence in NCDEX’s new multi-asset vision.
A Phased Entry into Capital Markets
NCDEX already holds the required preliminary approvals from market regulator SEBI and is focusing heavily on execution, technology build-out, and a phased rollout strategy designed to ensure system stability and smooth market adoption.
Mr. Arun Raste, Managing Director & CEO of NCDEX, confirmed the strategic roadmap, emphasizing that the raised capital will be primarily dedicated to establishing the platform for its equity and equity derivative segments.
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Phase 1: Mutual Fund Distribution Platform: This will be the first product to launch, targeted for the beginning of the next financial year (April 2026). The distribution platform is being prioritized because its operational requirements are separate from the core trading and surveillance systems. This platform will focus on increasing mutual fund accessibility in the underserved Tier-2 and Tier-3 cities, leveraging NCDEX’s deep regional penetration.
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Phase 2: Equities (Cash Segment): The launch of the equity cash market will follow, after which the core trading systems are stabilized.
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Phase 3: Equity Derivatives: The most complex financial instruments, equity derivatives, will be introduced once the cash segment is fully operational and the technological backbone proves robust.
Mr. Raste stated: “This fundraiser is a defining step in NCDEX’s transformation into a multi-segment exchange. The members will be able to take advantage of trading both the commodity and equity segments under a single platform.“
Fueling Growth: Technology, Manpower, and Inclusion
The ₹770 crore funding is strategically earmarked for three critical areas to support the expansion:
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Technology Infrastructure: Building bespoke, cutting-edge technology infrastructure, connectivity, and a robust risk management architecture required for high-volume equity trading.
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Manpower Expansion: A major hiring drive is planned, with NCDEX aiming to onboard approximately 150 new personnel over the next 12 months, recruiting talent specializing in capital markets, technology, and compliance.
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Market Development: NCDEX’s long-term strategy is rooted in financial inclusion, moving beyond major cities to tap into the ‘Bharat’ market. Mr. Raste highlighted the massive growth potential, noting that mutual fund participation has ballooned from 50 lakh investors 15 years ago to over five crore today. He believes the participation rate of India’s population in equities and mutual funds is still low (~15%) compared to developed markets like the US and UK (~50%), demonstrating ample room for growth.
The exchange aims to connect with rural participants, citing the example of a farmer investing in a ₹250 monthly Systematic Investment Plan (SIP) as proof that even small, consistent participation can help first-time investors “benefit from day one.”
Regional Ambitions: The Sri Lanka Partnership
NCDEX’s strategic vision extends beyond India’s borders into the South Asian region. The exchange plans to acquire approximately a 20% equity stake in a proposed new commodities and financial derivatives exchange in Sri Lanka, provisionally named CSEDEX, which is being established in partnership with the Colombo Stock Exchange (CSE).
The investment is estimated at around 70 million Sri Lankan rupees (approximately ₹24 crore), and NCDEX will support CSEDEX through a build-operate-transfer (BOT) model, providing essential operational expertise, technical architecture, and product development training. This move is still pending regulatory and governmental approvals in both India and Sri Lanka but signals NCDEX’s intent to become a leading regional financial market player.
Mr. Raste concluded that the market size is expanding quickly enough to support more competition. “There is space for everybody,” he asserted, confident that NCDEX is well-positioned to serve the next wave of retail and institutional investors.
