SEBI Chief Tuhin Kanta Pandey: Safeguards In Place To Curb Speculation In Power Futures

India has launched electricity derivatives to offer power producers and industrial buyers a regulated platform to hedge against price volatility. Speaking at the NSE Electricity Futures launch, SEBI Chairman Tuhin Kanta Pandey said regulatory safeguards like monthly contracts, extra margins on high-risk positions, and daily price limits will curb speculation. Jointly driven by SEBI, NSE, and CERC, the move fills a key gap in India’s power market by introducing forward price signals. These instruments aim to stabilize cash flows for producers, protect buyers from price spikes, and support the transition to clean energy, marking a key reform in the capital market.