India's National Commodity and Derivatives Exchange Ltd., an online bourse for agricultural products, has received approval from its board to launch an electronic mutual fund distribution platform, according to people familiar with the matter.
The service will aim to expand mutual fund access to investors, particularly in India's tier-2 and tier-3 cities where NCDEX has a broader reach, the people said, asking not to be identified as the information isn't public. The new platform will require regulatory clearance before it can go live.
A NCDEX representative didn't immediately reply to requests for comment.
The initiative puts NCDEX in direct competition with BSE Ltd.'s StAR MF platform and NMF at the National Stock Exchange of India Ltd. StAR holds 89% of the market share, BSE said in its earnings statement on Tuesday.
In August, NCDEX received preliminary approval to offer trading in equity-related products, including derivatives, as it seeks to widen its offerings to compete more directly with the country's main stock exchanges.
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