NCDEX Gets SEBI Nod For Mutual Fund Platform, First Step Toward Equity Trading

New Delhi: National Commodity & Derivatives Exchange Ltd (NCDEX) on Monday said it has received an in-principle approval from the Securities and Exchange Board of India (Sebi) to launch a mutual fund transaction platform, a precursor to its planned equity trading segment. The platform will allow investors to subscribe to and redeem mutual fund units, with clearing and settlement handled by National Commodity Clearing Ltd (NCCL), a wholly owned NCDEX subsidiary, the exchange said in a statement.

"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 Managing Director and Chief Executive Arun Raste said. The commodity exchange aims to expand financial inclusion through low-denomination systematic investment plans (SIPs) targeting rural and semi-urban areas, channelling household savings into regulated investment products.

The initiative also seeks to provide existing trading members with additional business opportunities amid subdued trading conditions, while creating a foundation for NCDEX's eventual equity and equity derivatives segment launch. NCDEX said the mutual fund platform could be rolled out faster than equity trading systems as it operates independently of stock trading infrastructure.

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