NCDEX launched two equity indices, NDEX and FINNDEX, on 22 October 2026, marking its first move beyond agricultural commodities into equity and equity derivatives, according to Business Standard. Spectate Media has not seen the exchange's own release.
The two indices
NDEX tracks 20 large, liquid Indian stocks drawn from the top 60 companies listed on NSE. FINNDEX covers 15 financial-sector stocks, excluding insurers, drawn from the top 40 eligible companies. Stocks are ranked on a composite score: 30% free-float market capitalisation, 30% average daily traded value, 20% beta and 20% volatility. No stock can exceed 15% of an index at rebalancing. Both are reviewed and rebalanced twice a year, in March and September, with ad-hoc changes allowed in specified cases.
What comes next
Chief executive Vikas Goel called the launch "an important milestone in NCDEX's transition into a multi-segment exchange". Business Standard says the equity segment is expected to get final SEBI approval in January, and that derivatives on the indices may follow in the second half of the next financial year, according to sources. Kotak Neo, the day before, reported that SEBI gave approval in principle on 29 July 2025 and that equity derivatives had been deferred to June 2027, citing reports. Those dates do not match, and neither is confirmed.
Background
NCDEX also launched a mutual fund transaction platform, NCDEX Nidhi, on 29 July 2026, and raised ₹770 crore in 2025 to fund its expansion, Kotak Neo reports. It is working with TCS on technology. Kotak Neo says the exchange also wants to revive agricultural indices dropped in 2022, but that depends on lifting restrictions on derivatives in seven agricultural commodities.
Key numbers
- NDEX constituents: 20 (From the top 60 NSE companies)
- FINNDEX constituents: 15 (From the top 40, excluding insurers)
- Single-stock cap: 15% (At each rebalancing)
- Rebalancing: Twice a year (March and September)
What boards and CFOs should note
Three points stand out. First, a new exchange is entering index products ahead of any equity trading. Second, the composite score weights beta and volatility as well as size and liquidity. Third, the derivatives timing should be treated as unconfirmed.
Source: Business Standard, 22 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
