Nasdaq, TCS Vie for NCDEX Equity Platform Deal

By John Pranay (Editor)

India's National Commodity and Derivatives Exchange Ltd (NCDEX) is reviewing proposals from top global vendors to develop its equity and equity derivatives platform, slated for launch in FY27. The exchange has raised ₹770 crore ($65M) for financing and aims to attract IPO-bound firms. The development comes as NCDEX seeks to expand its offerings in a competitive landscape dominated by established exchanges.

NCDEX is evaluating technical proposals from global vendors, including its existing vendor LSEG, US-based Nasdaq, London-headquartered Aquis, and India's largest software exporter Tata Consultancy Services Ltd (TCS). The exchange aims to launch the equity segment by December 2026, followed by the equity derivatives segment in March 2027. NCDEX has already raised ₹770 crore through a preferential issuance to 61 investors, including marquee institutions and high net worth individuals. The exchange plans to finance the launch of the platforms and interconnected services with the raised funds.

• September 2024: Sebi gives NCDEX the nod for the equity cash and derivatives platform.

• September 2025: NCDEX raises ₹770 crore through a preferential issuance to 61 investors.

• April 2026: NCDEX plans to launch the mutual fund transaction platform.

• December 2026: NCDEX aims to launch the equity segment.

• March 2027: NCDEX plans to launch the equity derivatives segment.

NCDEX's plans to launch an equity and equity derivatives platform are not new. In October last year, Sebi limited weekly equity index options expiries to one per exchange, sparking interest in an equity derivatives platform. However, the development of the platform has been slow, with NCDEX taking time to evaluate proposals from global vendors. The exchange's existing vendor, LSEG, has a track record in providing systems to stock exchanges, while TCS provides the exchange trading platform for commodity derivatives bourse MCX.

The launch of NCDEX's equity and equity derivatives platform faces several risks. The exchange will have to compete with established players, including NSE and BSE, which have already opted for a Tuesday and Thursday expiry, respectively. Additionally, the exchange will have to attract existing players to list on the new platform, rather than just new companies. The regulatory environment also poses a risk, with Sebi's recent decision to limit weekly equity index options expiries potentially affecting the demand for the new platform.

The next step for NCDEX is to finalize the vendor for its equity and equity derivatives platform. The exchange has shortlisted several global vendors, including Nasdaq and TCS, and is evaluating their technical proposals. The launch of the platform is expected to take place in FY27, with the equity segment launching in December 2026 and the equity derivatives segment launching in March 2027. The exchange will have to navigate the competitive landscape and regulatory environment to succeed.

This development highlights the pace of change in India's financial sector. The launch of NCDEX's equity and equity derivatives platform is a significant step towards expanding the exchange's offerings and attracting new players to the market. However, the competitive landscape and regulatory environment pose significant risks to the success of the platform. Crucially, this overlooks the potential impact of the platform on the existing players, including NSE and BSE, which may face increased competition. This suggests that the launch of the platform will be a closely watched development in the Indian financial sector.

On balance, this event screens as Bullish in our sentiment view.

1. TCS, Nasdaq vying for NCDEX equity platform vendor deal — https://www.livemint.com/market/stock-market-news/ncdex-equity-derivatives-platform-launch-plans-vendors-funding-11766148643678.html

Methodology: This analysis combines real-time data aggregation from manually selected global sources with advanced AI synthesis, engineered to provide neutral and data-driven insights.