NCDEX will venture into mutual funds, equity, and derivatives by 2026; 770 crore of funds and preparations are being made to hire 150 new employees
The biggest commodity exchange in India, NCDEX (National Commodity and Derivatives Exchange), is currently in the process of a significant business model change. The firm will venture into the mutual funds, equity, and share derivatives markets in the coming year. To do this, the exchange has recently increased its funding by 770 crore and has also set the process of 150 new hires.
This is not only an expansion move by NCDEX but also a significant move towards making it a financial services platform rather than a commodity exchange.
🚀 Mutual funds, equity, and derivative products to be introduced by 2026.
Reports indicate that NCDEX is about to move out of its conventional commodity business and venture into the capital markets segment. MD and CEO of the company Arun Raste confirmed that:
The first of these will be the Mutual Fund Distribution Platform.
This will be separate from its main trading system.
It will be launched at the beginning of the next financial year.
He added that the increase in funding will be mainly utilized in the development of the equity and equity derivatives segments.
💰 Raised 770 crore to expand the capital market.
NCDEX has issued shares worth about 770 crore to domestic and foreign investors in a massive preferential share issue. The following areas will be used in this capital:
New business line technology upgrades.
Infrastructure development of platforms.
Hiring of skilled professionals.
The exchange intends to recruit 150 new professionals in the coming year. The finalization of a technology vendor to the mutual fund and equity systems is also in progress.
🌱 Target small investors and rural India.
The major strategy of NCDEX is to concentrate more on Tier-2, Tier-3, and rural markets as opposed to big metro cities. The company seeks to use its well-established network of farmers and rural contacts to provide small investors with easy investment opportunities.
The company's plans include
Minor investment plans such as 250 SIP (Systematic Investment Plan).
Linking rural youth to the financial market.
Presenting new investors with safe investments.
This project has the potential to change the level of financial inclusion in rural India.
🌏 Expansion in Sri Lanka with work from CSE.
NCDEX is also on the path to expand its horizon globally. The company has also said that it has the option of buying a 20 percent stake in a new commodity and derivatives exchange being established in Sri Lanka. This collaboration will be with the Colombo Stock Exchange (CSE).
This deal:
is regulated in India and Sri Lanka.
The new exchange will be supported by NCDEX in terms of operational support and capacity building.
According to the international plan, the company is in the process of globalization.
Conclusion
The move by NCDEX to venture into the capital markets is a major move for the financial markets in India.
As mutual funds, equities, and derivatives are offered:
The company will increase its coverage.
New opportunities will be created for rural and small investors.
The access to finance will be enhanced in India and the surrounding nations.
An investment of 770 crore, recruiting new staff, and technological advancements would make NCDEX a powerful multi-asset financial pl
atform within a few years.
Disclaimer
The article is educational in nature. The company or security discussed in this section is not meant to give investment advice. Investing requires consulting your financial advisor and reading all the relevant documents
