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NCDEX Gets Nod for Mutual Fund Trading Platform
15 Dec
Summary
- SEBI grants in-principle approval for NCDEX to launch a mutual fund platform.
- National Commodity Clearing Ltd. will handle clearing and settlement.
- Platform aims to simplify investment for new and rural investors.
The Securities and Exchange Board of India (SEBI) has granted an in-principle approval for the National Commodity and Derivatives Exchange (NCDEX) to establish a trading platform for mutual funds. This strategic initiative is set to precede NCDEX's upcoming launch of its equity and equity derivatives segment, signaling a diversification into broader financial markets.
The clearing and settlement responsibilities for all mutual fund subscription and redemption orders will be managed by National Commodity Clearing Ltd., a subsidiary of NCDEX. The exchange highlighted its readiness to deploy the platform efficiently, noting that mutual fund transactions operate independently of existing equity trading infrastructure, enabling a significantly shorter turnaround time for implementation.
Arun Raste, MD and CEO of NCDEX, emphasized the platform's role in simplifying investment entry for new investors, particularly in rural and semi-urban areas. He stated that the mutual fund platform is designed to channel savings into regulated investment avenues, fostering deeper participation in the equity market.
