India's NCDEX eyes 20% stake in Lanka's 1st comex

India’s leading agriculture commodity exchange, the National Commodity & Derivatives Exchange (NCDEX), has decided to acquire around a 20 per cent stake in a new commodities and financial derivatives exchange being set up in Sri Lanka, subject to regulatory and governmental approvals.

- SANJEEB MUKHERJEE

The move aims to deepen NCDEX’s footprint in the financial ecosystem of its neighbouring country.

The new exchange, being promoted in Sri Lanka by the government and SEC, as it constitutes foreign direct investment. “This fits perfectly into our strategy to expand into equities,” he added.

Earlier this year, NCDEX signed an MoU with CSE to establish a comprehensive framework for commodities and derivatives trading in Sri Lanka.

Historically, Indian exchanges have faced stiff competition abroad. Around 2018, the National Stock Exchange attempted to acquire a sizeable stake in Bangladesh’s Dhaka Stock Exchange but was outbid by a consortium of Chinese exchanges. In subsequent years, Chinese firms have aggressively sought stakes in derivatives exchanges in Pakistan, Nepal, and Myanmar.