MCX shares surged 3% after the Securities and Exchange Board of India (SEBI) approved the launch of electricity derivatives, marking a significant milestone for India’s energy trading landscape. This green light, backed by the Central Electricity Regulatory Commission (CERC), is expected to revolutionize how power sector participants hedge price risks.
The introduction of electricity derivatives by Multi Commodity Exchange (MCX) will enable power generators, distribution companies, and large consumers to manage electricity price volatility more effectively. These new financial instruments are set to offer a transparent, regulated platform for hedging, enhancing market efficiency.
MCX Managing Director and CEO Praveena Rai called the development “pivotal” for the country’s commodities ecosystem. “These contracts will provide a reliable tool to manage power price risks, especially as markets evolve due to renewable integration and policy reforms,” Rai said.
She added that electricity derivatives would align with India’s renewable energy goals and expanding open access market, creating a vital link between the physical and financial power markets.
MCX shares opened at ₹7,568.50 and touched a new 52-week high of ₹7,704.50 during the session, with a low of ₹7,521.50. This marks a significant rally from the 52-week low of ₹3,612.15.
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