MCX Gets SEBI Nod to Set Up Coal Exchange

Multi Commodity Exchange of India Limited has received approval from Securities and Exchange Board of India to invest in and set up a coal exchange, marking its entry into the physical coal trading space.

The company will incorporate a wholly owned subsidiary, likely to be named MCX Coal Exchange Ltd., with an initial investment of up to ₹1 billion to meet regulatory net worth requirements.

MCX will initially hold a 100% stake in the proposed entity, with the option to bring in strategic partners at a later stage. The exchange will provide a transparent, standardised, technology-driven platform for coal trading, enabling efficient price discovery and physical delivery.

The move expands MCX’s presence in the energy segment, alongside its existing derivatives in crude oil, natural gas and electricity.
The subsidiary will apply to the Coal Controller Organisation of India for further approvals once the framework is notified.