Mumbai, April 20: The Multi Commodity Exchange (MCX) announced on Monday that it has received approval from the Securities and Exchange Board of India (SEBI) for its proposed coal exchange investment.
MCX plans to invest up to ₹100 crore to meet the minimum net worth requirements outlined in the coal exchange regulations. This move will strengthen the exchange’s energy portfolio, where it is already a major player in the crude oil and natural gas derivatives market. Last year, MCX launched electricity futures as part of its expansion.
In its statement, MCX emphasized that the proposed platform aims to create a regulated, transparent, and technology-driven market for coal trading, facilitating efficient pricing in the domestic market.
Following SEBI’s approval received last week, MCX intends to establish a wholly-owned subsidiary, likely to be named ‘MCX Coal Exchange Limited’ or ‘MCX Coal Exchange of India Limited.’ Initially, MCX will hold a 100% stake in this unit, with plans to include strategic partners later.
The proposed coal exchange will provide a standardized digital platform for physical delivery of coal at market-based prices. MCX stated that the newly formed entity will apply for necessary approvals from the Coal Controller Organization (CCO) as required.
Following this announcement, MCX shares rose by 0.90%, reaching ₹2,881. Over the past month, the stock has gained 19%, 56% over six months, and more than 140% in the past year.
My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Leave a Comment