NCDEX secures ₹500 cr funding, Citadel and Tower Research among investors

NCDEX Secures Rs 500 Crore Funding for Equity Market Entry.

Expert Analysis:

• Funding Secured: NCDEX has raised over Rs 500 crore from investors including Citadel Securities, Tower Research, Acacia Partners, Groww, Kotak Life Insurance, and JM Financial.

• Fundraising Target: The exchange aims to raise Rs 750 crore, with proceeds earmarked exclusively for building its equities business.

• Investor Commitments: Citadel Securities and Tower Research committed Rs 17 crore and Rs 34 crore respectively for minority stakes.

• Board Approval and Market Outlook: NCDEX’s funding commitments were discussed in its board meeting and will go to shareholders for approval on September 1, with experts highlighting strong profitability and investor appeal in Indian exchanges despite regulatory curbs on speculation.

• Shareholding Impact: Fresh funding will dilute existing institutional investors including LIC, NABARD, and Punjab National Bank.

• Launch Timeline: CEO Arun Raste stated NCDEX expects SEBI’s final approval by fiscal-end, targeting an August launch starting with cash, then derivatives.