For India to become truly wealthy, people in Tier-3 to Tier-6 towns must get benefits of multi-sectoral growth: NCDEX CEO

The National Commodity & Derivatives Exchange Limited (ncdex.com) launched its new mutual fund transaction platform named NCDEX Nidhi on Wednessday.

Speaking to ANI on the sidelines of the launch, Raste said when companies like Reliance or Tata grow, those gains should reach a farmer in the form of investment returns and dividends, in addition to their agricultural income.

Noting that NCDEX has a dedicated Farmer Producer Organization (FPO) division working directly with farmers across India, he said, the entity is working to develop educational material that can be effectively communicated to rural investors.

"India is growing rapidly, and if we don't educate and empower rural investors now, they will miss out on this growth story," he said adding "India can only become truly wealthy if people in Tier-3, Tier-4, Tier-5, and Tier-6 towns share in the benefits of our national economic, industrial, and service sector growth."

NCDEX Nidhi is a mutual fund transaction platform aimed at bridging the investment gap in rural and semi-urban India. NCDEX is a demutualized stock exchange operating under markets regulator SEBI (Securities and Exchange Board of India).

Rajiv Relhan, MD & CEO, National Commodity Clearing Limited (NCCL), stressed on simplification of financial products. He added simplifying financial products is crucial, as greater complexity can confuse investors and make it difficult for them to understand structured products.

"Even if you and I were to sit through a discussion on structured products, we would probably walk away after 15 minutes. Simplification in financial products is crucial," he said.

Tojo Banerjee, Chief of Equity Business, NCDEX, said India's mutual fund penetration in rural and semi-urban geographies remains well below its potential, not for lack of demand but for lack of accessible distribution.

"NCDEX Nidhi directly addresses that gap by putting a simple, compliant and API-ready platform in the hands of distributors, Registered Investment Advisers (RIAs), Asset Management Companies (AMCs) and retail investors. As NCDEX expands into equity and equity derivatives, this platform is a critical building block in our journey towards becoming a true multi-asset investment ecosystem for every Indian household," Banerjee said. (ANI)