Mumbai, June 12 (UNI) The National Stock Exchange of India (NSE) said that it has received approval from the Securities and Exchange Board of India (SEBI) to launch monthly electricity futures contracts.
This marks a significant milestone in deepening India’s power markets and supporting long-term structural reforms initiated under the Electricity Act, 2003.
The launch of monthly electricity futures by NSE aims to 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.
Ashishkumar Chauhan, MD & CEO, NSE, 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.”
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