NCDEX Eyes Equity Markets, Relaunches Agri Indices

Commodity exchange NCDEX is preparing for a strategic relaunch of its agricultural indices, which were discontinued in February 2022. Sources indicate these indices, including new ones for guar and spices, are expected to become operational within the next two quarters. The exchange's broader agricultural index, Agridex, is contingent on the lifting of a ban on derivatives for seven key agricultural commodities. This ban, extended by the market regulator until March 2026, may be reviewed next year.

Furthermore, NCDEX is actively pursuing diversification into new business segments, aiming to enter the equity cash segment by January next year, with equity derivatives planned for July, pending final approval from the Securities and Exchange Board of India (SEBI). The exchange secured ₹770 crore last year from investors and brokers, including prominent names like Radhakishan Damani and Sunil Singhania, to support these expansion plans. Earlier this year, NCDEX also launched a mutual fund transaction platform and weather derivatives.