MCX gets Sebi approval to incorporate new coal exchange, shares likely names for subsidiary

Multi Commodity Exchange of India Ltd (MCX) on Monday said it has received approval from the Securities and Exchange Board of India (Sebi) to invest in a proposed coal exchange company, marking its entry into the coal trading segment.

"This marks MCX's significant commitment into the energy sector and deepening commodity ecosystem. With highly liquid derivatives contracts on crude oil, natural gas and the launch last year of its electricity futures contract, the foray into coal via the new entity, will make MCX’s energy presence comprehensive. It is aimed at developing a regulated, transparent, technology-driven market platform for buying and selling coal that facilitates an efficient and robust price discovery for coal in the country," the company said in an exchange filing.

Pursuant to Sebi's approval granted on April 17, 2026, MCX plans to incorporate a wholly-owned subsidiary, which is likely to be named 'MCX Coal Exchange Ltd.' or 'MCX Coal Exchange of India Ltd.'

As per the company, MCX will initially hold a 100 per cent stake in the proposed entity, with the option to bring in strategic partners at a later stage. The exchange has committed an investment of up to Rs 100 crore to meet the minimum net worth requirements outlined under the draft Coal Exchange Rules.

The proposed platform aims to offer a transparent and standardised digital marketplace for the physical delivery of coal, enabling efficient and market-driven price discovery.

Following incorporation, the new company will apply to the Coal Controller Organization of India for necessary approvals, as and when prescribed.

MCX, operational since 2003, is India's leading commodity derivatives exchange and the world's largest commodity options exchange by volume, according to FIA (2024). The exchange commanded a market share of about 98 per cent in terms of the value of commodity futures contracts traded in FY25.

Meanwhile, shares of MCX were last seen trading 0.91 per cent higher at Rs 2,881.55.