NCDEX has received an in-principle approval from SEBI to launch equity and equity derivatives trading, but the final go-ahead will depend on meeting a set of regulatory directions.
The market regulator has asked the agri-focused bourse to continue strengthening its commodity derivatives franchise as it diversifies into equities. NCDEX, which commands a dominant share of India’s agri-commodity trade, must also ensure sufficient investment in technology, operations and risk frameworks before the launch.
Further, SEBI has advised the exchange to first build a strong, stable cash equity segment before scaling into equity derivatives. “The move into equity is a natural extension of our founding ethos: enabling price discovery, empowering producers and unlocking financial inclusion. The approval outlines a few directional expectations — each of which aligns well with our vision for a broader, inclusive market framework,” NCDEX MD and CEO, Arun Raste, told businessline.