MCX receives SEBI approval to incorporate a new Coal Exchange

Multi Commodity Exchange of India Limited (MCX), the nation's leading commodity derivatives exchange, announced that it has received approval from the Securities and Exchange Board of India (SEBI) to invest in a proposed Coal Exchange company. This marks MCX's significant commitment into the energy sector and deepening commodity ecosystem. With highly liquid derivatives contracts on crude oil, natural gas and the launch last year of its electricity futures contract, the foray into coal via the new entity, will make MCX's energy presence comprehensive. It is aimed at developing a regulated, transparent, technology-driven market platform for buying and selling coal that facilitates an efficient and robust price discovery for coal in the country.

Pursuant to SEBI's approval granted on April 17, 2026, MCX plans to incorporate a new subsidiary, likely to be named 'MCX Coal Exchange Ltd.' or 'MCX Coal Exchange of India Ltd.'

Key details of the venture include:

Ownership: MCX will initially hold a 100% stake in the subsidiary, with the potential to join hands with strategic partners.

Investment: A capital commitment of up to ₹100 Crore to comply with minimum net worth requirements as per draft Coal Exchange Rules.

Market Mechanism: The exchange will provide a transparent, standardized digital platform for the physical delivery of coal at market-driven and robust prices.

The newly incorporated company will submit an application to the Coal Controller Organization of India as and when prescribed.

Source : Equity Bulls

Keywords

MCX MultiCommodityExchangeofIndia CoalExchange SEBIApproval