Futures ban has hit agri ecosystem, eroded trust in mkt platform'

The National Commodity and Derivatives Exchange (NCDEX), a leading agri-commodity exchange, last year received approval from the Securities and Exchange Board of India (Sebi) to launch its equity and equity derivatives segments.

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Arun Raste, MD & CEO, NCDEX, speaks to Sandip Das on a range of issues related to expanding the bourse’s footprint and the impact of the ban on futures trading in several agri-commodities.

Could you elaborate on your plan to diversify beyond commodities into equities and equity derivatives?

Over the last two decades, we have established ourselves as India’s leading agricultural commodity exchange. We are now expanding into a full-fledged multi-asset platform by entering the mutual funds, equity and equity derivatives segments. The idea is to connect grassroots savings with regulated investment opportunities and enable a wider cross-section of the population to create wealth. While stock markets have seen phenomenal growth over the last five years, millions of people remain outside the equity ecosystem. As an agri-commodity exchange, our network and client base are deeply rooted across regions. We see a strong opportunity to bring these participants into the mutual fund and equity fold. At the same time, we will continue to grow our commodities business through market expansion, new products and additional segments. Investors have recognised this opportunity, and we secured an investment of ₹770 crore from a diversified group of 61 investors.