NCDEX Update: There will be a big expansion of NCDEX! SEBI Approval for Mutual Fund Platform

• NCDEX SEBI approval for mutual fund platform
• Trades in agricultural commodities futures and options
• Savings in small towns will get a boost

NCDEX Update: National Commodity and Derivatives Exchange i.e. NCDEX has received SEBI approval for mutual fund platform. This will greatly boost savings in small towns. NCDEX is India’s leading commodity exchange, trading in agricultural commodities futures and options. As such, farmers, traders, processors, exporters and investors trade on NCDEX to fix prices and hedge risks in grains, pulses, oilseeds, spices and other agricultural products.

The approval by SEBI is considered as an important step for NCDEX to enter the equity and equity derivatives market. Separation of mutual fund transactions from equity trading on this platform will ensure operational convenience. NCDEX believes that it is fully prepared to launch this service in the near future.

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NCDEX’s subsidiary NECL will play an important role in this. The announcement will allow people from rural areas and small towns to easily enter the world of investment amid intense efforts to attract new investors to the market. NCDEX CEO Dr. Speaking about this, Arun Awase said that launching a mutual fund platform before the launch of the equity market was a deliberate and timely decision. Mutual funds are the easiest and safest way for new investors. Also, he believes that equity investments are starting to take off in India.

Apart from this, he believes that this platform will become a means of saving in rural and small towns. Investing these savings in managed and profitable investments will boost the economy. This will make it easier for investors to invest in small-value Systematic Investment Plans (SIPs) and safe exchange-based systems. This move will surely be a boon for investors as NCDEX moves towards a platform with a wider range of assets.

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A new way of investment for rural India

• Expanding financial inclusion by offering micro SIPs in rural and deprived areas.
• Diversification of rural savings into safe, regulated and productive investment options.
• Building a strong cash market base ahead of the launch of the equity segment of the exchange.
• Providing additional business opportunities to existing merchant members.
• Attract new subscribers with a simple, high-value product.