There's Ample Room for New Entrants in Equity Exchange: NCDEX CEO

National Commodity and Derivatives Exchange (NCDEX) is gearing up for its next big leap—a foray into equities. The exchange, which is currently laying the groundwork, plans to launch equity trading by August next year. To fuel this diversification, Managing Director (MD) and Chief Executive Officer (CEO) Arun Raste says NCDEX aims to raise over ₹500 crore for offering both cash equities and derivatives. In a telephonic interview with Khushboo Tiwari, Raste outlines the strategy, funding plans, and vision behind NCDEX's entry into the equity markets. Edited excerpts:

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What made NCDEX decide to foray into equities?

Our analysis revealed a unique opportunity. According to Securities and Exchange Board of India (Sebi) regulations, we are a stock exchange—though currently the smallest, we're fully compliant and match the biggest players in risk management and systems. Another crucial factor was the ban on certain commodities. Two decades ago, India and China were at par in this space; now, the Chinese exchange is a hundred times larger. In India, government agencies don't participate in commodities trading, making the exchange heavily reliant on private sector involvement. Physical market players have shown limited interest in commodities and derivatives, resulting in volatility. To counter this, we identified equities as the ideal avenue for growth.

Why do you think now is the right time?