SEBI Grants NCDEX Approval to Launch Mutual Fund Transaction Platform

NCDEX Moves Towards Multi-Asset Exchange with MF Platform Clearance

The National Commodity and Derivatives Exchange (NCDEX) has received in-principle approval from the Securities and Exchange Board of India (SEBI) to introduce a Mutual Fund (MF) transaction platform , marking an important milestone in its transition from a commodity-focused exchange to a diversified, multi-asset market infrastructure institution.

Regulatory Approval and Platform Scope
NCDEX, traditionally recognised for agri-commodity derivatives trading, will now enable mutual fund subscription and redemption through an exchange-driven framework. The proposed platform is expected to focus on low-denomination systematic investment plans (SIPs) , making mutual fund investments more accessible to retail and first-time investors. By leveraging exchange-based systems, the platform aims to improve efficiency, transparency, and standardisation in MF transactions.

Clearing and Settlement Mechanism
All transactions executed on the MF platform will be cleared and settled by National Commodity Clearing Limited (NCCL) , a wholly owned subsidiary of NCDEX. NCCL will ensure secure processing, risk management, and regulatory compliance, similar to established exchange-traded clearing systems. This structure is intended to strengthen investor confidence and operational robustness.

Strategic Step Towards Equity Markets
The launch of the MF transaction platform is being viewed as a strategic precursor to NCDEX’s proposed entry into the equity and equity derivatives segments . According to Managing Director and CEO Dr Arun Raste , the initiative will help familiarise investors with NCDEX’s expanded offerings while building operational readiness for broader market participation.

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

Overall, the move reflects a broader trend of Indian exchanges evolving into multi-asset platforms , enhancing market depth and investor choice while strengthening the country’s financial market infrastructure.

Exam-Focused Points

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

• NCCL will handle clearing and settlement of mutual fund transactions.

• The platform supports MF subscription and redemption , including low-denomination SIPs.

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