Equity markets granted conditional approval by SEBI to NCDEX
The National Commodity & Derivatives Exchange (NCDEX) has taken a significant step forward in its mission to empower rural and semi-urban savers, as it has received in-principle approval from the Securities and Exchange Board of India (SEBI) to launch equity and equity derivatives trading.
This move is a natural extension of NCDEX's founding ethos, as stated by its Managing Director and CEO, Raste. NCDEX aims to become "India's first equity exchange truly built for Bharat," serving as a listing and investment platform for agri-tech companies, rural-focused fintechs, cooperatives, and small enterprises.
However, before the final go-ahead, NCDEX must meet a set of regulatory directions. The exchange must preserve its existing commodity market strength, ensuring that its commodity trading volumes remain robust. It must also demonstrate technological and compliance readiness, building trading platforms, clearing and settlement mechanisms, and robust risk management systems suitable for equity market complexities.
NCDEX is investing significantly in platform development, compliance infrastructure, member onboarding, and product innovation, with plans to raise ₹500-600 crore through a primary equity issuance. The exchange will also integrate APIs with rural fintech platforms for easier market access.
In addition to strengthening its commodity derivatives franchise, NCDEX will provide dedicated on-boarding support for farmer producer organizations and small enterprises. It will also engage agri value chain stakeholders, institutional investors, global AgriTech, rural fintech, and inclusive capital markets players for fundraising discussions.
To encourage rural and semi-urban savers to participate in the capital market, NCDEX envisions a market where these savers are encouraged to route their savings into productive investments. To this end, NCDEX plans to introduce sector-linked offerings such as FPO-basket exchange-traded funds for retail investors.
Subject to regulatory approval, NCDEX also envisions launching Agri Infra REITs to attract long-term capital into warehouses, cold storage, and logistics infrastructure.
To skil up its rural investor and broker base, NCDEX will leverage the NCDEX Institute, which will provide skilling programs for these individuals.
NCDEX is backed by institutions including the National Stock Exchange, LIC, Nabard, ICICI Bank, and IFFCO.
The article was published on August 8, 2025.
NCDEX is investing in platform development, compliance infrastructure, member onboarding, and product innovation, with plans to raise ₹500-600 crore through a primary equity issuance.
The exchange will also integrate APIs with rural fintech platforms for easier market access.
NCDEX plans to introduce sector-linked offerings such as FPO-basket exchange-traded funds for retail investors.
Subject to regulatory approval, NCDEX also envisions launching Agri Infra REITs to attract long-term capital into warehouses, cold storage, and logistics infrastructure.
To skil up its rural investor and broker base, NCDEX will leverage the NCDEX Institute, which will provide skilling programs for these individuals. NCDEX was backed by institutions including the National Stock Exchange, LIC, Nabard, ICICI Bank, and IFFCO at the time of publication on August 8, 2025.
