The National Commodities & Derivatives Exchange (NCDEX) is planning to launch equity cash and derivatives segments within the next 12 months. This comes as part of NCDEX diversification strategy beyond its agricultural commodity trading business.
In an anonymous statement to the mint, an NCDEX official stated that “NCDEX is planning to launch equity derivatives by June 2027." This is part of their plan to enter segments beyond commodities. The exchange will initially launch one weekly options contract and one monthly options contract."
What are the key strategies for diversification?
As a part of its diversification strategy, NCDEX is planning to launch the following new products:
A) Mutual Funds Platform
B) Equity Derivatives
C) Equity Cash Segment
Recent Approvals For New Segments
In Dec 25, the exchange received an in-principle approval for its mutual fund platform.
In July 25, the exchange got in-principle approval for launching equity and equity derivative segments.
In February 25, the NCDEX board approved its equity market entry.
Also Read: NCDEX Gets In-Principal Approval For Mutual Funds
NCDEX Launch Timelines
The exchange said that it looks to launch the mutual fund platform before expanding into the equity and derivatives businesses. Arun Raste, the MD and CEO of NCDEX, stated, “Subject to regulatory approval, we plan to launch a mutual fund platform in June to expand the reach of the MF segment beyond the top 30 markets."
For the equity, cash, and derivatives, he stated, “We have just finalised the systems, hardware, et al for the equity (cash) segment, and once we receive SEBI (Securities and Exchange Board of India) approval, we intend to launch it towards the year-end. While it is early days to talk about equity derivatives post the above two launches and subject to regulatory approvals, we intend to enter the derivatives segment with weekly and monthly options contracts.”
The launch of the new segments is subject to the fulfilment of conditions laid down by SEBI. “They will enter the UAT (user acceptance testing) phase for equities (cash) by September. NCDEX is also awaiting SEBI’s final nod, which is expected to come this year,” said the official.
NCDEX Finally Moving Beyond Agri-Commodities
These new operations will be one of the most ambitious plans of NCDEX since the exchange began its operations in 2003 under the Atal Bihari Vajpayee-led National Democratic Alliance (NDA), which lifted a four-decade ban on commodity derivatives trading. In the last two decades, the NCDEX has built its identity around commodity derivatives trading. But now, the exchange is trying to reposition itself among India’s much bigger equity market ecosystem.
Rs 770 Crore Funding To Finance New Platforms
On September 25, NCDEX raised Rs 770 crore from 61 investors, including Groww, Zerodha, R.K. Damani, and Ramesh Damani. This was raised to make capital expenditures for trading facilities and compliance mechanisms, as well as financial support during the rollout of new products.
Also Read: NCDEX Shares Jump 50% After Damani & Zerodha Investment
Can NCDEX compete with NSE and BSE in the equity market?
While NSE had a total premium turnover of Rs 142.42 trillion in FY26, BSE’s premium turnover in the same period was Rs 48.22 trillion. NCDEX only dominates the agricultural commodity trading with a futures turnover of Rs 1.4 trillion and a total options premium turnover of ₹209 crore.
So, before competing with NSE and BSE, NCDEX has a long way to go in increasing its turnover and trade value. These initiatives are a sign that NCDEX can emerge as a significant player in the future and attract significant investor interest in NCDEX Unlisted Shares.
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