The National Stock Exchange of India (NSE) has received approval from the Securities and Exchange Board of India (SEBI) to invest in the proposed National Coal Exchange of India Limited, marking a key regulatory step towards establishing a formal platform for physical coal trading in the country.
According to a statement by the NSE, the approval has been granted under Regulation 38(2) of the SECC Regulations, 2018, and is seen as a significant milestone in developing a structured and transparent market for coal transactions in India.
NSE will now proceed to apply to the Coal Controller Organization to obtain the necessary licence for setting up the coal exchange under relevant regulatory provisions.
The proposed exchange is designed to enable electronic spot trading of coal through standardised contracts.
This framework is expected to bring in transparent price discovery and clearly defined settlement mechanisms for market participants, including producers, consumers and traders.
The initiative aligns with the Government of India’s ongoing coal sector reforms, particularly commercial mining and liberalised coal sales.
Once operational, the exchange is expected to contribute to the development of a formal, efficient and transparent market structure for coal trading, subject to incorporation of the entity and further regulatory approvals.
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