NCDEX Launches Next-Gen Mutual Fund Transaction Platform Nidhi For Farmers To FPOs: Know Key Features Here

Nidhi is an end-to-end mutual fund transaction platform, allowing members, mutual fund distributors (MFDs), mutual fund intermediaries (MFIs), and registered investment advisors (RIAs) together, right from investor onboarding, lump-sum investments, SIPs, redemptions, mandate management, reconciliation, refunds, transaction notifications, and a flexible settlement process.

The platform will work as a bridge between underserved investors of rural to semi-urban areas to connect them with more transparent and regulated markets. Nidhi is Sebi-regulated and in line with AMFI norms for mutual fund transactions.

"Nidhi is a natural extension of what NCDEX has always stood for, which is connecting India's underserved communities to formal, regulated markets. With this launch, our reach into rural and semi-urban India, built over two decades, now becomes a gateway for millions of first-time investors beyond top 30 cities to participate in the mutual fund story, while we continue to serve our core agricultural stakeholders," said Dr. Arun Raste, MD and CEO, NCDEX.

How Unique Is Nidhi Platform?

NCDEX Nidhi is designed with a structured verification, consent, reconciliation, and settlement framework to enable secure and streamlined transaction processing between investors, intermediaries, AMCs, RTAs, payment aggregators, and NCCL. The platform focuses on operational efficiency, transaction transparency (timestamped notifications), complete investor "in the loop" processes and notifications, automated workflows, and seamless connectivity across the mutual fund transaction lifecycle.

NCDEX Nidhi Features:

1. Accurate Timestamping for NAV:

Every investor consent and order is timestamped at the point of creation, ensuring transparency and audit-ready compliance for applicable NAV processing.

2. Universal UPI Autopay :

SIP mandates can be activated seamlessly across all major UPI applications, cutting paperwork and improving activation speed.

3. Clear Failure Reasons:

Actionable, transaction-level failure codes across onboarding, KYC, bank verification, mandates and orders replace generic error messages, enabling faster resolution.

4. Flexible Transaction Support:

Lumpsum purchases, redemptions, and new or existing folios across single or multiple schemes are all supported on one platform.

5. Flexible SIP Options:

Investors can choose their preferred frequency, payment mechanism and mandate type, supported by UPI Autopay and E-NACH.

6. End-to-end support for lump sum investments, SIPs and redemptions

With this launch, NCDEX extends its clearing and settlement expertise beyond commodities to mutual funds.

"We are delighted to extend NCCL's clearing and settlement expertise beyond commodities to mutual funds. For years, we have brought discipline to fund reconciliation, validation and settlement across NCDEX's derivatives ecosystem. NCDEX Nidhi marks a natural next step for NCCL, widening our role into a new asset class and reinforcing our position as a settlement backbone for India's evolving markets," said Rajiv Relhan, Managing Director & CEO, NCCL.

How To Access NCDEX's Nidhi Platform?

Investors can access the platform online! Click on the link here: https://www.ncdex.com/ncdex-nidhi/welcome-to-ncdex-nidhi.

While distributors can also integrate it into their own systems through APIs.

The onboarding process is entirely digital. Investors will have to fulfill KYC check, PAN validation, bank account verification and an OTP-based two-factor authentication.

Onboarding is the first step before starting investment. Hence, the investor becomes eligible to transact on the platform only after all mandatory onboarding validations are completed successfully.

Who Can Apply For Nidhi Platform?

At present, only residential investors are allowed. If additional investor categories are enabled in the future, the onboarding process will apply the validations and checks applicable to those investor types.

Also, NCDEX is currently providing services for Physical Folios. In future, services for Demat accounts would also be enabled.

What Is Physical Folio?

As per NCDEX, the physical folio is a mutual fund folio where the investor's holdings and related records are maintained in folio form directly with the Asset Management Companies (AMCs) or its Registrar & Transfer Agents (RTAs). Transactions such as Lumpsum purchase, SIP, redemption, and updates are as per mentioned folio.

Details such as PAN details, tax status, contact information, personal details, professional details, address details, bank account details, and nominee information are taken into account during the onboarding.

Once the onboarding is completed, investors can invest easily through their physical folios. However, there are two payment options. For one-time investment, investors can pay via UPI and net banking. While for SIPs, users can selected UPI Autopay and e-NACH mandates.

NCDEX Nidhi Settlement Rules:

The transactions at NIDHI will be cleared and settled through National Commodity Clearing Limited (NCCL), a wholly-owned subsidiary of NCDEX. NCCL manages fund collection, payment validation and reconciliation, unit settlement (pay-in and pay-out), and refunds. NCCL will also process all transactions placed on NCDEX Nidhi, including subscriptions, redemptions, switches, and other transaction types.

However, it needs to be noted that NCCL will only play a role of coordinating between banks, registrars and transfer agents (RTAs), AMCs, depositories, and payment aggregators for the settlement of the transaction. It does not act as a counterparty to transactions and does not provide a settlement guarantee.

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