India's premier agricultural commodities exchange, the National Commodity and Derivatives Exchange (NCDEX), is in advanced stages of selecting a technology vendor for its ambitious foray into the equity markets. The exchange is currently reviewing detailed technical proposals from a shortlist of global heavyweights, including Tata Consultancy Services (TCS), Nasdaq, the London Stock Exchange Group (LSEG), and Aquis.
The Race for the Technology Contract
According to a person familiar with the development, NCDEX has shortlisted vendors with proven expertise in providing robust systems to stock exchanges worldwide. Tata Consultancy Services (TCS), India's largest software exporter, brings direct experience from powering the trading platform for the Multi Commodity Exchange (MCX). They are competing against US-based exchange technology giant Nasdaq, its London-headquartered rival Aquis, and the exchange's existing vendor, LSEG.
When contacted for confirmation, Arun Raste, the Managing Director and CEO of NCDEX, declined to comment, citing confidentiality. Queries sent to the shortlisted vendors also remained unanswered at the time of reporting.
Raste did, however, provide clarity on the launch timeline. After receiving the Securities and Exchange Board of India's (Sebi) approval in September 2025, NCDEX aims to roll out its equity cash segment by December 2026. This will be followed by the launch of the equity derivatives segment in March 2027. "Post the launch of the mutual fund transaction platform by April next year, we are targeting the equity cash and equity derivatives segments for launch in FY27," Raste stated.
Funding the Foray and a Competitive Landscape
To finance this significant diversification and the required interconnected services, NCDEX secured substantial capital earlier this year. In September 2025, the exchange raised approximately ₹770 crore through a preferential share issuance to 61 investors. This diverse investor pool included institutions like Kotak Life Insurance and JM Financial, prominent high-net-worth individuals such as Madhu Kela and Ramesh Damani, stockbrokers, and foreign high-frequency traders.
This 40% preferential issuance diluted the stakes of existing major shareholders, including the National Stock Exchange (NSE), Life Insurance Corporation (LIC), and Nabard, reducing each of their holdings to below 10%.
NCDEX's entry into equities, however, sets the stage for a fierce battle for market share. The landscape is dominated by established giants like NSE and BSE. A key opportunity emerged after Sebi's regulatory change in October 2024, which limited weekly equity index options expiries to one day per exchange. From September 2025, exchanges could choose between Tuesday or Thursday for these expiries. With NSE opting for Tuesday and BSE shifting to Thursday, a new entrant faces the challenge of carving out a niche.
As an unnamed broker explained, launching an equity cash platform first might help attract new, IPO-bound companies to list on NCDEX, creating an "annuity business" from annual listing fees. However, luring existing listings away from NSE or BSE would be a far tougher proposition.
NCDEX's Journey and Financial Turnaround
NCDEX commenced operations in 2003, marking the reintroduction of commodity derivatives trading in India after a four-decade ban under the Vajpayee-led NDA government. While it has established a strong position in agri-commodities with robust delivery in spices and guar, its history has seen challenges, including a government ban on pulses and rice futures in 2007.
Financially, the exchange reported a consolidated operating loss of ₹74.95 crore in FY25. However, through strategic stake sales in its subsidiaries, it managed to post a net profit of ₹236 crore for the fiscal year, a remarkable turnaround from a net loss of ₹27.7 crore in FY24.
The move to launch an equity platform represents a pivotal strategic expansion for NCDEX as it seeks to diversify its revenue streams and leverage its exchange infrastructure to compete in India's vast capital markets.
