Chandigarh: India’s largest commodity exchange, MCX, has received SEBI approval to launch electricity derivatives, offering power firms and large consumers a regulated tool to hedge price volatility amid evolving energy dynamics.
The Multi Commodity Exchange of India (MCX) on Friday announced it has secured approval from the Securities and Exchange Board of India (SEBI) to introduce electricity derivatives—a significant development for India’s energy and commodities market.
The contracts will provide power generators, distribution companies, and large industrial consumers with a transparent, regulated platform to hedge against price volatility and manage market risks more effectively. This move comes amid increasing dynamism in electricity pricing, driven by renewable energy integration and market-based reforms.
“This marks a pivotal development in India’s commodities ecosystem,” said Praveena Rai, MD & CEO of MCX. “These contracts will offer a reliable and efficient hedging tool, acting as a vital bridge between the physical and financial power sectors.”
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