MCX Receives SEBI Approval to Launch Electricity Derivatives
The Multi Commodity Exchange of India Ltd. (MCX) has received SEBI approval to launch electricity derivatives, marking a key step in developing India’s energy trading and risk management ecosystem.
June 10, 2025. By Mrinmoy Dey
This development underscores the strong commitment and support of the Regulators – SEBI and Central Electricity Regulatory Commission (CERC) – in enabling a dynamic and sustainable power market.
The Electricity Derivatives Contracts to be introduced by MCX will enable generators, distribution companies, and large consumers to hedge against price volatility and manage price risks more effectively, by enhancing efficiency in the power market.
Speaking on the development, Praveena Rai, MD and 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.”
This move marks a significant step for MCX in advancing commodity trading and supporting India's efforts toward sustainable energy and capital market growth. It also marks a pivotal step toward deepening India's energy markets and aligns with the broader vision of 'Viksit Bharat'.
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