Commodities exchange National Commodity & Derivatives Exchange Limited (NCDEX) is looking to expand beyond agricultural commodities by entering the equity market, with plans to launch a cash market segment in late FY27 or early calendar year 2027, subject to regulatory approvals.
The exchange also plans to introduce exchange-traded funds (ETFs) and mutual fund products linked to its newly launched equity indices, followed by futures and options (F&O).
Vikas Goel, MD & CEO of NCDEX, said the exchange aims to build a differentiated offering rather than compete directly with established players on their existing strengths. The strategy will focus on multi-factor indices, technology investment and tapping retail investors in smaller towns who remain underserved by financial markets.
The exchange has already launched two rule-based equity indices, NDEX and FINNDEX, as the exchange expands into the equity and equity derivatives segments.
Unlike conventional benchmarks that primarily use free-float market capitalisation to select stocks, NCDEX’s indices use four factors: free-float market capitalisation, liquidity, beta and volatility.
The exchange believes this approach could offer traders a different way to track market movements and express their views. It plans to build products around the indices as regulatory approvals come through.
“We are looking for uncontested spaces,” Goel said, explaining the exchange’s strategy to focus on opportunities where it can build a presence rather than compete directly with larger exchanges.
NCDEX intends to use its existing network in smaller cities and towns to expand its retail investor base. Its agricultural commodities business has helped it establish connections with farmers and farmer producer organisations (FPOs). The exchange has also launched a mutual fund distribution platform and is training FPOs to distribute mutual fund products to farmers.
Technology will be central to the equity business. NCDEX raised around ₹770 crore in October 2025, with a substantial portion of the funds directed towards technology infrastructure. The exchange aims to match the technology capabilities of established players such as BSE and MCX, while preparing its systems to support high-frequency trading as volumes grow.
The exchange also hopes to attract institutional participation as its equity platform develops. Building liquidity and drawing investors to the new segment will be important for its growth.
NSE is a shareholder in NCDEX, but Goel said it does not play an active role in the exchange’s operations. NCDEX is a professionally managed, board-driven company.
NSE Indices currently manages both of NCDEX’s equity indices, with any further collaboration to be considered on commercial terms.
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NCDEX eyes equity cash market launch by early 2027, plans ETFs and derivatives