The National Commodity and Derivatives Exchange (NCDEX) has received board approval to establish a mutual fund distribution platform, aiming to launch this initiative by April 2026, pending regulatory approval from the Securities and Exchange Board of India (SEBI).
Arun Raste, Managing Director and CEO of NCDEX, confirmed the development in an interview with businessline. He stated, “We have got the board approval, and once SEBI clears it, we should be in a position to launch the platform by April.”
The new platform is modeled after existing systems like BSE Star MF and NSE NMF II and will operate independently from the exchange’s primary trading and settlement systems. Raste emphasized, “It will be a separate platform, not dependent on the trading and settlement platform. So, I don’t have to wait for the equity system to be finalized.”
NCDEX has begun discussions with two to three technology providers and expects to select a partner by early January. The anticipated investment to develop the platform is approximately ₹15 crore. Raste noted, “It’s not a major investment — the key is connecting with the right people, including AMCs, brokers, and NGOs.”
The objective of this platform is to facilitate mutual fund investments for small investors, particularly in rural regions. NCDEX plans to involve its Farmer Producer Organisations (FPOs) as sub-agents of independent financial advisers (IFAs) and brokers, which would allow farmers to access affordable mutual fund options. Raste explained, “If FPOs can distribute ₹100 sets of mutual funds, it will help bring farmers into the formal financial system.” Initially, at least five of the approximately 50 asset management companies are expected to participate.
Raste emphasized the importance of operational efficiency, stating, “From the AMC’s perspective, speed is critical, while for brokers and IFAs, the ease of operation matters. If we can crack both, we can crack this business.” The exchange will provide training to FPOs, enabling them to serve as agents for some brokers or IFAs and facilitate customer onboarding. He anticipates that training and onboarding efforts will continue until April.
“This is about inclusion — financial and rural,” Raste remarked. “We are connecting segments that are not yet part of the formal market.”
The article was published on November 12, 2025.
