MUMBAI: India’s largest farm derivatives alternate, Nationwide Commodity & Derivatives Change Ltd (NCDEX), has appointed Tata Consultancy Providers (TCS) as its expertise vendor, because the bourse prepares to enter the equities market.
India’s largest software program exporter will construct the IT methods required for NCDEX to launch an fairness money section by the top of 2026 and an fairness derivatives section by March 2027.
“We’ve appointed TCS as our tech vendor,” Arun Raste , MD & CEO of NCDEX advised Mint . “We are going to launch fairness money by the top of the present calendar yr and fairness derivatives by the top of the subsequent fiscal yr (FY27).”
TCS was chosen after a four-month course of involving contenders together with Nasdaq, London Inventory Change Group and Swiss-controlled Aquis. TCS shares ended 2.11% decrease at ₹2,692.2 apiece on Friday. The corporate can also be the expertise vendor for MCX, the nation’s largest metals and power alternate.
NCDEX obtained approval from the Securities and Change Board of India (Sebi) early final yr to launch fairness money and fairness derivatives segments.
To finance the brand new platforms and associated providers, NCDEX raised ₹770 crore by a preferential allotment to 61 traders in September final yr. Buyers included Kotak Life Insurance coverage, JM Monetary, high-net-worth people resembling Madhu Kela and Ramesh Damani, stockbrokers together with Share India and Globe, and international high-frequency merchants resembling Optiver and Citadel.
The 40% preferential issuance diluted holdings of present traders—together with the Nationwide Inventory Change (NSE), which held 15%, and Life Insurance coverage Corp. (LIC) and Nabard, which held 11.1% every—to under 10% every, Raste stated.
Other than NCDEX, Indian exchanges providing commodity derivatives embrace MCX, Nationwide Inventory Change (NSE) and BSE. India’s commodity derivatives turnover stood at ₹568 trillion in FY25, with MCX accounting for 99.5% market share, in keeping with Sebi information.
Curiosity in launching an fairness derivatives platform gathered tempo after Sebi, in October final yr, restricted weekly fairness index choices expiries to 1 per alternate, in contrast with a number of expiries earlier. Efficient September this yr, exchanges had been allowed to decide on one among two expiry days – Tuesday or Thursday.
NSE opted for Tuesday expiries, whereas BSE shifted to Thursday from Tuesday in September, intensifying competitors for any new entrant in search of market share in fairness index choices.
“NSE-backed NCDEX has raised funds for launching new fairness money and derivatives segments, within the hope that a number of the IPO-bound firms would possibly checklist on their new platform. It is like an annuity enterprise with itemizing charges for firms that change from ₹3 lakh to ₹4 lakh every a yr,” stated a dealer.
NCDEX started operations in 2003 after Atal Vajpayee-led Nationwide Democratic Alliance authorities reintroduced commodity derivatives buying and selling following a four-decade ban. The alternate at the moment sees sturdy supply in spices and the guar complicated and plans to relaunch pepper and potato derivatives contracts.
In 2007, buying and selling in pulses and rice futures was banned by the United Progressive Alliance authorities following sharp value rises linked to provide constraints.