{
  "id": 94404,
  "title": "‘NCDEX entry into MF distribution will be a Vande Bharat movement for the industry’",
  "url": "https://urgent.news/2026/08/03/ncdex-entry-into-mf-distribution-will-be-a-vande-bharat-movement-for",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-03T16:07:35.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/ncdex-entry-into-mf-distribution-will-be-a-vande-bharat-movement-for-the-industry/article71300798.ece"
  },
  "original_language": "en",
  "account": "The National Commodity and Derivatives Exchange (NCDEX) has recently unveiled its mutual fund distribution platform, NCDEX Nidhi, with a keen focus on smaller cities. The move signifies NCDEX's intent to diversify its operations beyond core commodity trading and enter the mutual fund arena. Arun Raste, the MD & CEO of NCDEX, discussed the rationale behind this diversification during an interview with businessline. He elaborated on the NCDEX Nidhi platform's distribution model, which is conceptually similar to other exchanges' technology platforms, but stands out due to its unique distribution strategy.\n\nUnlike other exchanges that heavily rely on their broker network for distribution, NCDEX aims to create a distinct channel for mutual fund distribution. This strategy stems from the observation that AMCs have struggled to build meaningful distribution in the top 30 cities. NCDEX has extensive experience in rural India, having facilitated over 1.3 million farmer trades on its platform. Many of these farmers possess surplus income but lack access to regulated investment products, often resorting to alternatives like gold, land, or Ponzi schemes. NCDEX's objective is to bridge this gap by establishing a new distribution network, leveraging its rural partnerships. Over 800 farmer producer organizations (FPOs) and cooperatives have already joined the NCDEX Nidhi platform, positioning them as distributors to tap into this untapped market.\n\nThe journey to becoming a mutual fund distributor was not without challenges. The first hurdle was clearing the NISM certification exam, which only 40 out of the initial 40 candidates passed on their first attempt. NCDEX recognized that the issue was not a lack of capability but language proficiency. After redesigning the training program, candidates started passing the examination. Additionally, NCDEX has around 200 commodity participants who can also serve as distributors, creating a dedicated distribution channel separate from the traditional broker network.\n\nIn terms of NCDEX's broader objectives, the company aims to reduce India's dependence on foreign institutional capital by encouraging rural wealth to enter regulated financial markets. Furthermore, as Indian companies distribute dividends, that wealth can flow back into rural households. The partnership between FPOs and their investors fosters a culture of peer accountability, reducing the likelihood of venture into equities and mutual funds. NCDEX aims to introduce simple investment products like lump-sum investments post-harvest and Systematic Investment Plans (SIPs) funded through regular income. These products cater to the unique financial needs of farmers who receive two main income streams: large seasonal payments after harvest and regular income from dairy or poultry activities.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}