Overview

• MCX announced final SEBI approval on June 6 to introduce electricity derivatives contracts, becoming India’s first exchange to do so.
• The exchange’s shares jumped over 5% on June 9 to a record Rs 7,844 on the BSE following the regulatory nod.
• Backed by both SEBI and CERC, the new derivatives will enable generators, distribution firms and large consumers to hedge volatile power prices.
• MCX CEO Praveena Rai said the contracts will bridge physical and financial energy markets by offering a regulated framework for risk management.
• The approval follows a Rs 25 lakh SEBI penalty in May for disclosure lapses, underscoring heightened regulatory oversight.