Indian Agriculture Bourse gets final approval to launch new mutual fund platform: Report

India’s National Commodity and Derivatives Exchange (NCDEX), an online marketplace for agricultural commodities, has secured board approval to launch an electronic platform for mutual fund distribution, sources told Bloomberg.

The platform aims to expand mutual fund access to the investors who are particularly in Tier-2 and Tier-3 cities, where NCDEX has more reach.

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This new platform will require regulatory clearance before it goes live for the investors. This product puts NCDEX in direct competition with a platform launched by BSE - the StarMF platform and NMF at the NSE.

Star MF platform holds 89% of the market share, according to the BSE earnings statement on Tuesday.

In August, NCDEX secured preliminary approval to introduce trading in equity-linked products, including derivatives, as part of its plan to expand its offerings and compete more directly with India’s leading stock exchanges.

In September, India's largest agri-commodity index, the National Commodity & Derivatives Exchange (NCDEX), received shareholders’ approval for the issuance of over 3.91 crore equity shares worth Rs 770 crore to a pool of investors on a preferential basis.

NCDEX received an in-principle approval from market regulator Securities and Exchange Board of India (Sebi) in July this year to launch its equity & equity derivatives segment. ETMarkets was first to report on the regulatory nod.

After receiving Sebi’s go-ahead, the company raised funds from a diversified pool of 61 investors comprising a mix of institutional investors, financial partners, PE firms and HNIs.

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"This marks a significant milestone in NCDEX’s journey to transform into a multi-asset exchange platform aligned with India’s evolving capital market needs. The capital commitment underscores investor confidence in NCDEX’s governance, market credibility, and future growth trajectory. The funds from this issuance will be utilised towards bespoke technology infrastructure, connectivity, risk management architecture, regulatory compliance, and market development initiatives," the company said in a press statement.

NCDEX will introduce its equity cash market segment in 2026 which will be followed by equity derivatives, to ensure smooth adoption and robust liquidity.

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