MCX gets SEBI approval to launch Electricity Derivatives

• 07 Jun 2025
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The Multi Commodity Exchange of India (MCX) has been given approval by the Securities and Exchange Board of India (SEBI) to introduce electricity derivatives. This development, backed by both SEBI and the Central Electricity Regulatory Commission (CERC), is aimed at helping power producers, distributors and large-scale consumers deal with price volatility, and better manage risk. 

It is a significant move towards making power sector of our country more efficient and showcases alignment with the country's long term goal of becoming energy-secure and economically advanced.

Praveena Rai, MD & CEO, MCX, said that the introduction of electricity derivatives marks a pivotal development in India’s commodities ecosystem. These contracts will offer its participants a reliable, transparent and regulated platform for the management of power price risks that are becoming more dynamic due to renewables and market based reforms. With our country's growing focus on renewable energy and open access power markets, the electricity derivatives can serve as a key bridge between the physical and financial sectors.

With roughly 98% of the total value of futures contracts traded in FY 2024-2025, MCX remains the market leader in India when it comes to commodity derivatives. The exchange offers a wide range of commodities, including sector-based indices, metals, energy, bullion and agricultural products.

Financially speaking, MCX had a solid quarter ending March 2025 and reported a 54.16% jump in net profit at ₹135.46 cr. Also, its net sales rose up 60.83% to ₹291.33 cr compared to the same quarter of the previous year.

Source: Business Standard