The NCDEX unlisted share price is down 16.75% in the last one month in the unlisted market, falling to ₹318 per share. But here is the interesting thing happening with NCDEX.
NCDEX to Relaunch Agridex and SpiceDex
NCDEX wants to relaunch its agricultural indices, Agridex and SpiceDex, which were discontinued in February 2022. The exchange is thinking of relaunching these indices within the next two months.
So, what could be interesting about this development?
NCDEX Agricultural Commodity Business
NCDEX is a traditional agricultural exchange where agricultural commodities are traded. Agricultural commodities had a 12% share in FY18, but this has now fallen to just 0.1%.
NCDEX lost its ground to MCX because of the ban on trading in agricultural commodities, which included paddy, wheat, chana, moong and mustard seed and their derivatives. The restrictions on these commodities led to the discontinuation of its agricultural indices. NCDEX also discontinued Gaurex and Soydex Index.
This led to a major decline in volume and revenue for NCDEX. But now, there are some developments that are close to watch.
NCDEX Agridex and SpiceDex Relaunch
NCDEX now wants to relaunch Agridex and SpiceDex within the next two quarters. These indices will work on cash settlement.
The next major positive development to watch is that SEBI is considering a review of the ban on agricultural commodities next year. If the ban is removed, it could help NCDEX recover its trading volumes and bring back revenue.
NCDEX Diversification Into New Businesses
NCDEX is also trying to diversify and grow its revenue by entering new businesses. The exchange is looking to enter the equity cash segment by January, subject to SEBI approval. It also wants to enter the equity derivatives segment by July next year.
NCDEX has also entered the mutual fund business through NCDEX Nidhi.
Competition From MSEI
But one thing to watch is that its new competitor is also moving fast. MSEI, Metropolitan Stock Exchange of India Limited, is set to be included on major platforms such as Groww and Zerodha, allowing users to trade and buy securities listed on MSEI.
What to Watch in NCDEX Unlisted Shares?
The NCDEX unlisted share price has fallen to ₹318, but the company has several developments to watch. The relaunch of Agridex and SpiceDex, the possible review of restrictions on agricultural commodities, and NCDEX’s entry into the equity cash, equity derivatives and mutual fund businesses could be important developments for the company.
The key question now is whether NCDEX can recover the agricultural trading volumes and revenue it lost while successfully building its new businesses.