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NCDEX receiving SEBI’s approval to launch a mutual fund platform:
Regulatory Milestone: National Commodity & Derivatives Exchange Ltd (NCDEX) has received in-principle approval from the Securities and Exchange Board of India (SEBI) to launch a mutual fund transaction platform.
New Service Offering: The platform will enable investors to subscribe to and redeem mutual fund units, expanding NCDEX’s service beyond its traditional commodity trading business.
Clearing and Settlement: All mutual fund transactions on this platform will be cleared and settled by National Commodity Clearing Ltd (NCCL), which is a wholly owned subsidiary of NCDEX.
Strategic Expansion: This approval is seen as a preliminary step toward NCDEX’s broader plan to enter equity and equity derivatives segments in the future.
Investor Inclusion Focus: NCDEX aims to use the mutual fund platform to boost financial inclusion, particularly targeting investors in rural and semi-urban areas, including through micro-SIPs.
Independent Platform: The mutual fund transaction system will operate independently from existing equity trading systems, enabling a faster rollout.
Market Opportunity: By adding a mutual fund trading facility, NCDEX is positioning itself to attract new members and broaden its business scope beyond commodity derivatives.
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