The Multi Commodity Exchange (MCX) has received approval from the Securities and Exchange Board of India (SEBI) to invest in a proposed Coal Exchange. This move reflects MCX’s commitment to the energy sector and aims to enhance the commodity ecosystem.
With established, highly liquid derivative contracts for crude oil and natural gas, as well as the introduction of electricity futures contracts last year, MCX’s entry into the coal market through this new entity will broaden its energy presence significantly.
The initiative is designed to create a regulated and transparent technology-driven market platform for coal trading, intending to facilitate efficient price discovery in the country. MCX plans to establish a new subsidiary, tentatively named MCX Coal Exchange or MCX Coal Exchange of India.
Initially, MCX will hold a 100% stake in this subsidiary but may seek to partner with strategic stakeholders in the future. To comply with the minimum net worth requirements outlined in the draft Coal Exchange Rules, the exchange will commit up to ₹100 crore.
The newly formed entity will offer a standardized digital platform for the physical delivery of coal, aimed at ensuring market-driven pricing that reflects robust trading conditions. The upcoming company will also apply to the Coal Controller Organisation of India for necessary approvals.
Published on April 20, 2026.
