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Business Standard
12-06-2025
- Business
- Business Standard
NSE gets SEBI nod to launch monthly electricity futures
The National Stock Exchange of India (NSE) has received approval from the Securities and Exchange Board of India (SEBI) to launch monthly electricity futures contracts. This development marks a key step toward strengthening India's power markets and advancing the structural reforms outlined in the Electricity Act, 2003. According to a NITI Aayog report, Indias transition to net-zero emissions by 2070 will require annual investments exceeding $250 billion through 2047. By 2030, renewable energy sources like solar and wind are expected to account for over 50% of the countrys installed power capacity. A well-developed electricity derivatives market is crucial to attracting both domestic and global capital to support this transition. The new monthly electricity futures contracts aim to provide market participants with tools to hedge against price volatility, enabling more transparent and efficient price signals in the power sector. They are expected to spur investments across the electricity value chain, from generation to retail. Ashishkumar Chauhan, MD & CEO, NSE said, This approval is only the beginning of NSEs vision for a broader electricity derivatives ecosystem. Plans are underway to gradually introduce contracts for difference (CFDs) and other long-duration electricity derivatives such as quarterly and annual contracts subject to regulatory approvals The introduction of these contracts will follow a calibrated, phased approach to ensure market integrity and build investor confidence. Aligning the growth of both spot and futures electricity markets is essential to creating a stable, liquid ecosystem. Financially settled futures will allow effective risk hedging, while a robust day-ahead spot market will support reliable price discovery. NSE is committed to working closely with all market participants, regulators, and stakeholders to align efforts around enabling policies such as Market-Based Economic Dispatch (MBED) and market coupling initiatives by CERC, as well as SEBIs framework on CFDs. Clearing and settlement of the new contracts will be handled by NSE Clearing, a Qualified Central Counterparty (QCCP) recognized by SEBI. The entity is supported by a strong net worth and a well-established settlement guarantee mechanism.
Mint
11-06-2025
- Business
- Mint
NSE gets Sebi nod to launch electricity derivatives
The National Stock Exchange of India (NSE) has received approval from the markets regulator to launch monthly electricity derivatives contracts, said the exchange in a filing. Plans are underway to gradually introduce contracts for difference (CFDs) and other long-duration electricity derivatives such as quarterly and annual contracts, subject to regulatory approvals, Ashishkumar Chauhan, NSE managind director (MD) and chief executive officer (CEO), said. The filing said that the launch of monthly electricity futures will provide market participants with effective hedging tools against electricity price volatility, enable more accurate price signals in the power sector, and encourage capital investments across the electricity value chain—generation, transmission, distribution, and retail. Electricity derivatives gain prominence as India's journey toward achieving its net-zero emissions target demands substantial investment, estimated at over $250 billion annually until 2047, according to a Niti Aayog report. 'By 2030, renewable energy sources such as solar and wind are expected to contribute over 50% of the nation's installed power capacity. A robust and dynamic electricity derivatives market is essential to attract this scale of climate finance from both domestic and global investors,' the release said. 'A calibrated and phased approach will ensure both market integrity and investor confidence. It is crucial for the spot and futures electricity markets to evolve in tandem to create a virtuous cycle of liquidity and stability. A financially settled futures market will allow participants to hedge their risks effectively, while a robust day-ahead spot market will ensure reliable price discovery,' Chauhan said. 'Our strong understanding of both spot and derivatives markets uniquely positions us to build an integrated and liquid electricity derivatives market,' NSE said in the release. Recently, the Multi Commodity Exchange of India (MCX) also received approval from the Securities and Exchange Board of India (Sebi) to launch electricity derivatives. MCX's shares had risen over 5% and reached a record high of ₹ 7,820 on the BSE after the exchange obtained regulatory clearance to introduce electricity derivatives on 9 June.
Business Upturn
11-06-2025
- Business
- Business Upturn
NSE gets SEBI nod to launch monthly electricity futures, aims to deepen power market reforms
By News Desk Published on June 11, 2025, 19:21 IST The National Stock Exchange of India (NSE) has received regulatory approval from the Securities and Exchange Board of India (SEBI) to launch monthly electricity futures contracts, marking a significant milestone in India's efforts to deepen its power markets and drive long-term structural reforms under the Electricity Act, 2003. The new futures contracts will provide market participants with tools to hedge against electricity price volatility, offer more accurate price signals, and encourage capital investment across the electricity value chain, including generation, transmission, distribution, and retail. According to Niti Aayog, India's transition to net-zero emissions by 2070 will require over $250 billion in annual investment until 2047, with more than 50% of installed power capacity expected to come from solar and wind by 2030. A liquid electricity derivatives market is seen as critical for attracting large-scale domestic and international climate finance. NSE MD & CEO Ashishkumar Chauhan stated that the approval is 'only the beginning' of the exchange's broader electricity derivatives strategy. Future offerings could include contracts for difference (CFDs) and longer-duration contracts like quarterly and annual futures, subject to regulatory clearances. The contracts will be financially settled and cleared by NSE Clearing Limited, a SEBI-recognized Qualified Central Counterparty (QCCP) with a robust settlement mechanism and strong capital base. NSE was the first Indian exchange to enter the electricity space, having established Power Exchange India Limited (PXIL) in 2008. With its combined expertise in spot and derivatives markets, NSE aims to build a comprehensive and liquid electricity derivatives ecosystem, aligned with key policy initiatives like Market-Based Economic Dispatch (MBED) and market coupling by CERC. This development strengthens NSE's position as a global leader in derivatives, having been ranked the world's largest derivatives exchange by trading volume in 2024 by the Futures Industry Association (FIA). News desk at
Economic Times
11-06-2025
- Business
- Economic Times
NSE gets Sebi nod to launch electricity futures. 3 things exchange expects to achieve
NSE has received approval from the capital market regulator Securities and Exchange Board of India (Sebi) to launch monthly electricity futures contracts. The move comes with a view to deepen India's power markets and support long-term structural reforms initiated under the Electricity Act, 2003. ADVERTISEMENT In a press release issued on Wednesday, NSE called it a "significant milestone". "India's journey toward achieving its net-zero emissions target demands substantial investment—estimated at over $250 billion year on year till 2047 as per Niti Aayog report. By 2030, renewable energy sources such as solar and wind are expected to contribute over 50% of the nation's installed power capacity. A robust and dynamic electricity derivatives market is essential to attract this scale of climate finance from both domestic and global investors," the release said. Through the launch of monthly electricity futures, the NSE aims to achieve 3 things :1) Provide market participants with effective hedging tools against electricity price volatility.2) Enable more accurate price signals in the power sector. ADVERTISEMENT 3) Encourage capital investments across the electricity value chain—generation, transmission, distribution, and on the development, NSE MD & CEO Ashishkumar Chauhan said, "This approval is only the beginning of NSE's vision for a broader electricity derivatives ecosystem. Plans are underway to gradually introduce contracts for difference (CFDs) and other long-duration electricity derivatives such as quarterly and annual contracts subject to regulatory approvals.' ADVERTISEMENT In his view, a calibrated and phased approach will ensure both market integrity and investor confidence and it is crucial for the spot and futures electricity markets to evolve in tandem to create a virtuous cycle of liquidity and stability.A financially settled futures market will allow participants to hedge their risks effectively while a robust day-ahead spot market will ensure reliable price discovery, Chauhan said. ADVERTISEMENT Sebi nod to the NSE comes on the heels of an approval given to MCX to launch its own electricity derivatives. Also Read: MCX gets Sebi nod to launch electricity derivatives (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
11-06-2025
- Business
- Time of India
NSE gets Sebi nod to launch electricity futures. 3 things exchange expects to achieve
NSE has received approval from the capital market regulator Securities and Exchange Board of India (Sebi) to launch monthly electricity futures contracts. The move comes with a view to deepen India's power markets and support long-term structural reforms initiated under the Electricity Act, 2003. In a press release issued on Wednesday, NSE called it a "significant milestone". by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Top 25 Most Beautiful Women In The World Articles Vally Undo "India's journey toward achieving its net-zero emissions target demands substantial investment—estimated at over $250 billion year on year till 2047 as per Niti Aayog report. By 2030, renewable energy sources such as solar and wind are expected to contribute over 50% of the nation's installed power capacity. A robust and dynamic electricity derivatives market is essential to attract this scale of climate finance from both domestic and global investors," the release said. Through the launch of monthly electricity futures, the NSE aims to achieve 3 things : 1) Provide market participants with effective hedging tools against electricity price volatility. Live Events 2) Enable more accurate price signals in the power sector. 3) Encourage capital investments across the electricity value chain—generation, transmission, distribution, and retail. Commenting on the development, NSE MD & CEO Ashishkumar Chauhan said, "This approval is only the beginning of NSE's vision for a broader electricity derivatives ecosystem. Plans are underway to gradually introduce contracts for difference (CFDs) and other long-duration electricity derivatives such as quarterly and annual contracts subject to regulatory approvals.' In his view, a calibrated and phased approach will ensure both market integrity and investor confidence and it is crucial for the spot and futures electricity markets to evolve in tandem to create a virtuous cycle of liquidity and stability. A financially settled futures market will allow participants to hedge their risks effectively while a robust day-ahead spot market will ensure reliable price discovery, Chauhan said. Sebi nod to the NSE comes on the heels of an approval given to MCX to launch its own electricity derivatives. Also Read: MCX gets Sebi nod to launch electricity derivatives
