NCDEX Receives SEBI Nod To Launch Mutual Fund Transaction Platform
This initiative will act as a forerunner to the launch of the equity and equity derivatives segment, NCDEX said.
The National Commodity and Derivatives Exchange (NCDEX) has received an in-principle nod from the Securities and Exchange Board of India (SEBI) to launch a transaction platform for mutual funds, the exchange announced via a press release on Monday.
This initiative will act as a forerunner to the launch of the equity and equity derivatives segment, NCDEX reportedly said in a release.
Accordingly, the exchange highlighted that the responsibility of clearing and settlement of mutual fund subscription and redemption orders will be with National Commodity Clearing Ltd., a wholly-owned subsidiary of NCDEX.
The release also underscored that that mutual fund transactions operate independent of equity trading systems, and it is well positioned to roll out the platform with a significantly shorter turnaround time.
Arun Raste, managing director and chief executive officer of NCDEX spoke about the initiative and said that the introduction of a mutual fund platform ahead of an equity launch is both a strategic and timely decision.
"Mutual funds are among the simplest and safest starting points for new investors, and we believe this is where Bharat's equity journey truly begins. NCDEX's MF platform will play a pivotal role in moving rural and semi-urban savings into productive, regulated avenues and creating a strong pathway for deeper equity participation," Raste added.
Key Objectives
The main objecting of the MF platform, said NCDEX, is to facilitate financial inclusion by offering micro-SIPs in rural and underserved areas in accordance with SEBI and government priorities.
The move is also aimed at channelising rural savings into safe, regulated, and productive investment options. It will also help in building a strong cash-market base, especially before the exchange launches its equity segment.
The platform will support existing trading members by providing an additional business opportunity in a subdued trading environment. It will also boost on-boarding of new trading members with a "simple, high-value" product which is easily adoptable, the exchange added.
