Overview

• MCX will begin trading electricity futures on July 10 with 50 MWh lots available for all 12 calendar months and initial contracts spanning the current and following three months.
• Each contract will be quoted in rupees per megawatt-hour and cash settled using the volume-weighted average price of the Day Ahead Market at IEX.
• SEBI mandates daily price limits starting at 6 percent extendable to 9 percent, minimum margins of 10 percent or volatility-based VaR and client position caps at 300,000 MWh or 5 percent of open interest.
• NSE will launch its own electricity futures on July 11 supported by a Liquidity Enhancement Scheme to encourage market participation.
• The launch expands MCX’s commodities portfolio—where it holds 98 percent market share—and aims to deepen India’s energy markets and foster market-based electricity pricing.