The Multi Commodity Exchange of India Limited (MCX) has received approval from the Securities and Exchange Board of India (SEBI) to invest in a proposed coal exchange, signalling its entry into a new segment of the energy market.
The exchange said it intends to invest up to Rs 100 crore to meet the financial requirements outlined in the draft rules governing coal exchanges. This step is part of MCX's broader strategy to expand its footprint in the energy trading space.
MCX already offers derivatives contracts in commodities such as crude oil and natural gas, and recently introduced electricity futures.
The addition of coal trading is expected to strengthen its overall energy portfolio.
According to the exchange, the planned platform will aim to establish a transparent and technology-driven system for coal transactions, helping improve price discovery and efficiency in the domestic market.
To facilitate this initiative, MCX plans to set up a wholly owned subsidiary, likely to operate under the name 'MCX Coal Exchange Ltd' or a similar title.
The exchange will initially retain full ownership, with the option of bringing in strategic partners at a later stage.
The proposed platform will focus on enabling physical delivery of coal through a standardised digital framework, with pricing determined by market dynamics.
MCX added that the new entity will seek required clearances from the Coal Controller Organisation as part of the implementation process.
Following the announcement, shares of MCX moved higher in early trade on the Bombay Stock Exchange, touching an intraday peak and nearing their 52-week high, reflecting positive investor sentiment towards the development.