The foray is expected to make its energy portfolio more comprehensive; it already has established derivatives in crude oil, natural gas and electricity futures
Mumbai: The Multi Commodity Exchange of India Limited (MCX) on Monday said it has received approval from market regulator the Securities and Exchange Board of India (SEBI) to invest in a proposed coal exchange, marking its entry into the segment.
The exchange plans to commit capital of up to Rs 100 crore to meet the minimum net worth requirements as per the draft Coal Exchange Rules. The move underscores the commodity exchange’s push to deepen its presence in the energy space and expand the commodity ecosystem.
With established derivatives contracts in crude oil and natural gas, along with the launch of electricity futures last year, the foray into coal is expected to make its energy portfolio more comprehensive.
The proposed platform aims to create a regulated, transparent, and technology-driven marketplace for coal trading, enabling efficient price discovery in the domestic market, MCX said.
The exchange also said that, pursuant to SEBI’s approval granted last week, it plans to incorporate a wholly owned subsidiary, likely to be named ‘MCX Coal Exchange Ltd’ or ‘MCX Coal Exchange of India Ltd’.
Initially, MCX will hold a 100 per cent stake in the entity, with the possibility of bringing in strategic partners at a later stage, it added. The proposed coal exchange will offer a standardised digital platform for the physical delivery of coal at market-driven prices.
The newly incorporated entity will apply to the Coal Controller Organisation of India for necessary approvals as and when required, the exchange said.
Following the announcement, shares of MCX on Monday traded 1.38 per cent higher at Rs 2,895.10 on the BSE, hitting an intraday high. The stock touched a 52-week high of Rs 2,903.05 and a 52-week low of Rs 1,120.20 on the exchange.
