NCDEX Gets Nod for Mutual Fund Trading Platform

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.