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SEBI Approves Monthly Electricity Futures on NSE

NSE will implement a phased rollout to bolster investor confidence in its new electricity futures market.

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Overview

  • SEBI has approved NSE’s monthly electricity futures to provide tools for hedging power price volatility.
  • These contracts will be financially settled on a SEBI-regulated platform and cleared by NSE Clearing Limited.
  • The launch aims to improve price signals across the electricity value chain and spur investments in generation, transmission, distribution and retail.
  • NSE’s MD & CEO Ashishkumar Chauhan said the approval kicks off plans for Contracts for Difference and quarterly and annual futures once they receive SEBI’s clearance.
  • Coordinating new futures with a robust day-ahead spot market is expected to boost liquidity and stability and to help secure the climate finance needed for India’s net-zero goals.