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

The National Commodity and Derivatives Exchange (NCDEX) has secured funding of over Rs 500 crore with market maker Citadel Securities, high-frequency trading firm Tower Research and US-based investment firm Acacia Partners participating in the round.

Among the institutional investors confirming participation are Groww, Kotak Life Insurance and JM Financial, sources familiar with the matter said. NCDEX has also secured commitments from various brokers, high-net-worth individuals, private equity funds and other investors, they added.

The exchange aims to raise Rs 750 crore to fuel its entry into the equity markets.

Citadel Securities and Tower Research have committed Rs 17 crore and Rs 34 crore, respectively, for a minority stake in NCDEX. The proceeds are earmarked exclusively for building its equities business.

These commitments were discussed during NCDEX’s board meeting on Thursday and will be placed before shareholders for approval on September 1.

Queries emailed to NCDEX remained unanswered at the time of reporting.

Market experts said that driven by active participation and strong profitability, Indian stock exchanges remain an attractive investment avenue, even as regulators move to curb excessive speculative activity.

With this fresh funding round, the shareholding of existing institutional investors such as LIC, NABARD and Punjab National Bank will proportionally decline. NCDEX has already received in-principal approval from the Securities and Exchange Board of India (SEBI) to enter the equities segment.

In a recent interview with Business Standard, Arun Raste, managing director and chief executive officer of NCDEX, said the exchange expects SEBI’s final approval by the end of the current fiscal year, with plans to launch by August next year. The launch will begin with the cash segment, followed by derivatives, guided by data-driven analysis.