MCX gets SEBI nod to launch electricity derivatives

Backed by both SEBI and Central Electricity Regulatory Commission (CERC), this move aims to help power generators, distributors, and large consumers hedge price risks and manage volatility.

It is a big push for efficiency in the power market and aligns with India's goal of becoming a developed, energy-secure nation.

Praveena Rai, MD & CEO, MCX, said: The introduction of electricity derivatives marks a pivotal development in India's commodities ecosystem. These contracts will offer participants a reliable, transparent, and regulated platform to manage power price risks, which are becoming more dynamic due to renewables and market-based reforms. With India's growing focus on renewable energy and open access power markets, electricity derivatives can serve as a vital bridge between the physical and financial sectors.

MCX is India's leading commodity derivatives exchange with a market share of about 98% in terms of the value of commodity futures contracts traded in financial year 2024-25. It offers trading in a diverse range of commodities, spanning multiple segments including bullion, energy, metals and agri commodities, as well as sectoral commodity indices.

On a consolidated basis, MCX's net profit rose 54.16% to Rs 135.46 crore while net sales rose 60.83% to Rs 291.33 crore in Q4 March 2025 over Q4 March 2024.

Shares of MCX jumped 4.47% to settle at Rs 7419.65 on Friday, 6 June 2025.