The National Commodity and Derivatives Exchange (NCDEX) has received an in-principle nod from the Securities and Exchange Board of India (SEBI) to launch a transaction platform for mutual funds, the exchange announced via a press release on Monday.

This initiative will act as a forerunner to the launch of the equity and equity derivatives segment, NCDEX reportedly said in a release.

Accordingly, the exchange highlighted that the responsibility of clearing and settlement of mutual fund subscription and redemption orders will be with National Commodity Clearing Ltd., a wholly-owned subsidiary of NCDEX.

The release also underscored that that mutual fund transactions operate independent of equity trading systems, and it is well positioned to roll out the platform with a significantly shorter turnaround time.

Arun Raste, managing director and chief executive officer of NCDEX spoke about the initiative and said that the introduction of a mutual fund platform ahead of an equity launch is both a strategic and timely decision.

“Mutual funds are among the simplest and safest starting points for new investors, and we believe this is where Bharat’s equity journey truly begins. NCDEX’s MF platform will play a pivotal role in moving rural and semi-urban savings into productive, regulated avenues and creating a strong pathway for deeper equity participation,” Raste added.