Multi Commodity Exchange of India Limited (MCX) has received approval from the Securities and Exchange Board of India (SEBI) to invest in and incorporate a new coal exchange entity, the company announced in a press release dated April 20, 2026. The development marks MCX’s entry into the physical coal market, expanding its presence beyond derivatives into spot trading infrastructure.
According to the release, SEBI granted approval on April 17, 2026, allowing MCX to set up a new subsidiary, likely to be named ‘MCX Coal Exchange Ltd.’ or ‘MCX Coal Exchange of India Ltd.’ The company will initially hold a 100% stake in the proposed entity, with the option to bring in strategic partners at a later stage. MCX has committed an investment of up to ₹100 crore to meet the minimum net worth requirements as outlined under the draft Coal Exchange Rules.
The proposed coal exchange aims to establish a regulated, transparent, and technology-driven digital platform for the buying and selling of coal in India. The exchange will facilitate physical delivery of coal and is expected to support efficient and robust price discovery in the domestic market. The new entity will also be required to submit an application to the Coal Controller Organisation of India as per regulatory requirements.
This move aligns with MCX’s broader strategy to deepen its footprint in the energy segment. The exchange already offers derivatives contracts in commodities such as crude oil and natural gas, and had launched electricity futures last year. The foray into coal is expected to complement its existing offerings and strengthen its role in India’s commodity ecosystem. This compares to its current derivatives-focused business model, with the new initiative marking a diversification into physical commodity markets.
MCX is India’s leading commodity derivatives exchange and the largest commodity options exchange globally by number of contracts traded. Operational since 2003, the exchange commands a market share of about 98% in terms of value of commodity futures contracts traded in financial year 2024–25. It provides a wide range of products across bullion, energy, metals, and agricultural commodities, and has established partnerships with global exchanges and trade associations.
Going ahead, the focus will be on regulatory approvals from sector-specific authorities and the operational rollout of the coal exchange platform. Investors and industry participants will closely monitor timelines for launch, potential partnerships, and the broader impact on India’s coal trading ecosystem.