NCDEX Secures SEBI’s Conditional Green Light to Disrupt Equity Markets
India's commodity exchange heavyweight NCDEX just got regulatory steroids—SEBI's conditional approval to enter equity trading. Watch out, NSE and BSE.
The move could reshape India's financial landscape—or become another bureaucratic half-measure in a market that loves to regulate first, innovate never.
Active traders, sharpen your algorithms. The derivatives playground just got a new swing set—with SEBI's safety rails firmly bolted on.
One thing's certain: the 'conditionally approved' stamp means regulators get to claim progress while maintaining veto power. Classic Mumbai consensus.
Equity products
As part of its product strategy, NCDEX plans to introduce sector-linked offerings such as FPO-basket exchange-traded funds, which WOULD give retail investors exposure to aggregated farmer performance. Subject to regulatory approval, it also envisions launching Agri Infra REITs to attract long-term capital into warehouses, cold storage and logistics infrastructure, aimed at reducing losses and increasing producer incomes.
“We envision a capital market where rural and semi-urban savers are encouraged to route their savings into productive investments, so that they are not just price takers but active capital market participants and can generate wealth for themselves,” Raste said.
The exchange’s board has approved raising ₹500-600 crore through a primary equity issuance to fund platform development, compliance infrastructure, member onboarding and product innovation. “We are engaging agri value chain stakeholders, institutional investors aligned with long-term infrastructure plays and global ecosystem players in AgriTech, rural fintech and inclusive capital markets,” Raste said, adding that fundraising discussions are progressing well.
Rural inclusion
Alongside products, the exchange is building an accessibility framework that includes skilling programmes for rural investors and brokers through the NCDEX Institute, dedicated on-boarding support for farmer producer organisations and small enterprises, and API integrations with rural fintech platforms for easier market access.
With a network of over 650 farmer-producer organisations across 16 States and a reputation for trust in rural India, Raste expects the exchange 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.
NCDEX is backed by institutions including the National Stock Exchange, LIC, Nabard, ICICI Bank and IFFCO. It currently offers contracts in cereals, pulses, oilseeds, fibres, spices, guar complex and metals, and will now seek to leverage this DEEP rural base to expand into the equity space.
Published on August 8, 2025
