NCDEX Gets SEBI Approval for Mutual Fund Platform

The National Commodity and Derivatives Exchange (NCDEX) has received in-principle approval from the Securities and Exchange Board of India (SEBI) to launch a Mutual Fund (MF) transaction platform. The move marks a key milestone in the exchange’s broader strategy to evolve into a diversified, multi-asset market infrastructure institution.

Regulatory Clearance and Platform Scope

NCDEX is primarily known as an agri-based commodity derivatives exchange. With SEBI’s approval, it will now facilitate mutual fund subscription and redemption transactions through an exchange-led framework. The platform is expected to operate on low-denomination systematic investment plans, enhancing accessibility for a wider investor base.

Role of National Commodity Clearing

National Commodity Clearing Limited (NCCL), a wholly-owned subsidiary of NCDEX, will handle clearing and settlement for all mutual fund transactions on the platform. This ensures regulated, transparent, and secure processing of MF orders, similar to existing exchange-traded mechanisms.

Strategic Link to Equity Market Entry

The MF platform is positioned as a preparatory step ahead of NCDEX’s planned entry into the equity and equity derivatives segments. According to Managing Director and CEO Dr Arun Raste, launching mutual fund services at this stage is both timely and strategic, helping the exchange build investor familiarity before expanding into equities.

What to Note for Exams?

• NCDEX has received in-principle approval from SEBI for an MF platform.
• National Commodity Clearing is responsible for clearing and settlement.
• The platform will support MF subscription and redemption orders.
• The initiative precedes NCDEX’s equity and equity derivatives launch.

Capital Raising and Growth Plans

In September, NCDEX raised ₹770 crore through a preferential share issue to fund business expansion and its proposed equity exchange. The exchange has also indicated plans to access the primary market in the near future. Earlier, in August, it received initial regulatory approval to offer equity and equity-linked products, including derivatives, reinforcing its long-term growth roadmap.