SEBI Clears NCDEX to Launch Mutual Fund Transaction Platform

NCDEX Expands Beyond Commodities with Mutual Fund Services

The National Commodity and Derivatives Exchange (NCDEX) has secured in-principle approval from the Securities and Exchange Board of India (SEBI) to launch a Mutual Fund (MF) transaction platform , marking a significant step in its transformation into a diversified, multi-asset market infrastructure institution.

Regulatory Nod and Platform Features
Traditionally recognised as an agri-commodity derivatives exchange, NCDEX will now enable mutual fund subscription and redemption through an exchange-led framework. The proposed platform will focus on low-denomination systematic investment plans (SIPs) , aimed at widening participation and improving access for first-time and retail investors. By leveraging exchange infrastructure, the initiative is expected to bring efficiency, transparency, and standardisation to MF transactions.

Clearing and Settlement Framework
All MF transactions executed on the platform will be cleared and settled by National Commodity Clearing Limited (NCCL) , a wholly owned subsidiary of NCDEX. NCCL’s role ensures regulated processing, robust risk management, and secure settlement—aligned with exchange-grade standards already familiar to market participants.

Strategic Pathway to Equity Markets
The MF platform is a strategic precursor to NCDEX’s planned entry into the equity and equity derivatives segments . According to Managing Director and CEO Dr Arun Raste , introducing mutual fund services now is timely and helps build investor familiarity and operational readiness ahead of broader market expansion.

Capital Raising and Growth Roadmap
To support its diversification plans, NCDEX raised ₹770 crore in September via a preferential share issue. The exchange has also indicated intentions to tap the primary market in the near future. Earlier regulatory approvals to offer equity and equity-linked products, including derivatives, further reinforce NCDEX’s long-term growth strategy.

Why It Matters
The move underscores a broader trend of exchanges evolving into multi-asset platforms , enhancing investor choice while strengthening India’s market infrastructure ecosystem.

Exam-Focused Points

• SEBI granted in-principle approval to NCDEX for an MF platform.

• NCCL will handle clearing and settlement of MF transactions.

• The platform supports MF subscriptions and redemptions with low-denomination SIPs.

• The initiative precedes NCDEX’s equity and equity derivatives launch.