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India's Coal Market Set for Transparent Trading
20 Apr
Summary
- MCX will launch a new subsidiary for coal trading.
- The exchange aims for a transparent, technology-driven market.
- MCX commits Rs 100 crore to meet net worth requirements.
The Multi Commodity Exchange (MCX) has received approval from the Securities and Exchange Board of India (SEBI) to establish a new subsidiary focused on coal trading. This entity, likely to be named MCX Coal Exchange, is designed to build a regulated, transparent, and technology-driven market platform for coal in India. The exchange aims for efficient and robust price discovery for the commodity nationwide.
MCX will initially hold a 100% stake in the new subsidiary, with plans to potentially bring in strategic partners in the future. A capital commitment of up to Rs 100 crore has been made by MCX to satisfy the minimum net worth requirements stipulated by the draft Coal Exchange Rules. The subsidiary will subsequently apply to the Coal Controller Organisation of India.
This development follows a similar initiative by the National Stock Exchange (NSE), which also received SEBI approval for its own coal exchange, provisionally named National Coal Exchange. NSE plans to hold a 60% stake in its venture, with the remaining 40% open to other stakeholders.
