NCDEX Gets SEBI Nod to Enter Equity, Derivatives Market; Plans ₹750 Crore Fundraise

The National Commodity and Derivatives Exchange (NCDEX) has received in-principle approval from the Securities and Exchange Board of India (SEBI) to foray into the equity and equity derivatives trading space, marking a major strategic shift for the exchange known primarily for its agri-commodity trading platform.

According to sources familiar with the matter, NCDEX is planning to raise ₹750 crore to fund this expansion, positioning itself as a broader capital market player beyond its traditional commodity focus.

The development comes just months after the exchange’s board approved a proposal to diversify into new segments. The move signals an ambition to tap into India’s deepening equity markets, particularly at a time when both retail participation and institutional flows into the equity and derivatives segment are reaching record highs.

A Structural Pivot for NCDEX

The in-principle approval from SEBI permits NCDEX to begin work on launching equity and equity derivatives trading offerings, subject to fulfilling technical, compliance, and operational prerequisites laid out by the regulator. This includes building out new trading infrastructure, clearing and settlement mechanisms, and governance frameworks appropriate for the securities market.

This will be the first time an Indian commodity exchange ventures into the mainstream equity trading domain, a space currently dominated by NSE and BSE.

"The goal is to broaden the exchange’s business model and reduce dependency on agricultural contracts, which are inherently cyclical and policy-sensitive," said a person familiar with the exchange's internal deliberations.

₹750 Crore Fundraise in Focus

To support this multi-segment expansion, NCDEX is preparing to raise approximately ₹750 crore, with the final fundraising structure yet to be announced.

Industry observers note that the exchange had earlier indicated an investment outlay of ₹400–600 crore for this initiative, and the increased capital target suggests a broader execution plan than initially anticipated.

What This Means for the Industry

NCDEX’s entry into equities and derivatives introduces fresh competition in an already consolidated market. However, the move is expected to expand investor choice, particularly for participants seeking a multi-asset exchange platform under one roof.

If executed effectively, NCDEX could emerge as a credible third player in India’s equity market landscape, complementing its existing strength in agri-commodities and diversifying its long-term revenue streams.

Regulatory watchers will be paying close attention to how quickly NCDEX is able to operationalise this new segment, and whether it can secure the necessary liquidity, broker partnerships, and investor interest needed to sustain growth beyond its core commodity market.