MCX rises 4% after Sebi approves to launch electricity futures; IEX up 4%

Multi Commodity Exchange of India (MCX) share price gained 3.6 per cent in trade on Monday, June 9, 2025, logging a day's high at ₹7,694 per share on BSE. Meanwhile, Indian Energy Exchange (IEX) share price also gained 4.3 per cent, logging an intraday high at ₹211.1 per cent.
At 9:32 AM, MCX shares were trading 3.64 per cent higher at ₹7,689.45 per share on the BSE and IEX shares were up 3.61 per cent at ₹209.55 per share. In comparison, the BSE Sensex was up 0.30 per cent at 82,438.57.
In the past one year, MCX shares have given multi-bagger returns of 103 per cent and IEX shares have gained 22 per cent as compared to Sensex's rise of around 7 per cent.
Sebi approves MCX's Electricity Derivatives Contracts
The rally in both stocks came after Securities and Exchange Board of India (Sebi) granted approval to MCX for the launch of Electricity Derivatives Contracts.
"The Multi Commodity Exchange of India Ltd. (MCX), India's leading Commodity Derivatives Exchange, has received approval from the Securities and Exchange Board of India (Sebi) to launch Electricity Derivatives, marking a significant milestone in the evolution of India's Energy trading landscape," the company's filing read.
The Electricity Derivatives Contracts to be introduced by MCX will enable generators, distribution companies, and large consumers to hedge against price volatility and manage price risks more effectively, by enhancing efficiency in the power market.
What does MCX launching Electricity Derivatives Contracts mean for IEX?
Until now, IEX has dominated India's short-term electricity market, primarily handling physical power trading. MCX's entry into electricity derivatives introduces a new financial market for electricity, allowing participants to trade futures contracts based on electricity prices. However, IEX focuses on physical delivery of electricity (for utilities, discoms, industries). While, MCX will offer derivatives that are financial instruments (suited for price risk management, not delivery).
What are Electricity Derivatives Contracts?
Electricity derivatives contracts are financial instruments that allow market participants to hedge, speculate, or manage price risk associated with electricity.
They are not settled by physical delivery of electricity but by cash settlement, based on the spot market price of electricity such as that traded on power exchanges like IEX in India.
About MCX
MCX, operational since 2003, is India's leading commodity derivatives exchange with a market share of about 98 per cent in terms of the value of commodity futures contracts traded in the financial year 2024-25. It offers trading in a diverse range of commodities, spanning multiple segments including bullion, energy, metals and agri commodities, as well as sectoral commodity indices.
About IEX
IEX is an Indian power exchange, that provides a nationwide automated trading platform for the physical delivery of electricity, renewable energy, and certificates.

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