National Commodity and Derivatives Exchange Limited (NCDEX) is planning to launch an equity exchange to diversify its business and bring the benefits of the market to more retail investors. 

What other new changes are going to happen in NCDEX, which till now works only as a commodity exchange, NCDEX Managing Director and Chief Executive Officer Arun Raste discussed in detail with The Bonus. After getting in-principle approval from SEBI, NCDEX has signed an agreement to raise Rs 770 crore from major investors to start an equity exchange.

These include Grow, Zerodha, Radhakishan Damani, Ramesh Damani, Madhusudan Kela and Sunil Singhania. Citadel Securities led by Kenneth Griffin, Tower Research of America have also agreed to invest. Indian companies like Kotak Mahindra Life Insurance, JM Financial and Acacia Partners have also made their presence in the funding round.

Arun Raste said, shares will be issued to investors in the annual general meeting to be held on September 25 and the money will be received after a week. New recruitments will start in the first week of October. Work will be done on technology, infrastructure and market connectivity in a month or two. When we are fully ready from our side, SEBI will be asked to inspect, the day we get the final approval, only then we will start our exchange. We will try to start the exchange in the next one year.

Arun Raste said, we do not need to compete with the big players BSE and NSE, because 2.3 crore new investors have entered the market in one year. He said, like China, India should also have six to seven exchanges. If we get even one percent market share, it will be very good. We will be profitable.