MCX Gets SEBI Nod To Launch Electricity Derivatives

The Multi Commodity Exchange of India Ltd. (MCX) has secured approval from the Securities and Exchange Board of India (SEBI) to introduce electricity derivatives, the company announced on Friday.

These new contracts will help power generators, distribution firms, and large consumers hedge against price fluctuations, improving their ability to manage risk in an increasingly dynamic energy market.

MCX’s Managing Director and CEO, Praveena Rai, called the move a “pivotal development” for India’s commodities landscape. She highlighted that electricity derivatives will provide a reliable, transparent, and regulated platform to tackle growing price volatility—driven largely by renewables and ongoing market reforms.