The National Stock Exchange of India Limited (NSE) has received approval from the Securities and Exchange Board of India (SEBI) under Regulation 38(2) of the SECC Regulations, 2018, to invest in the proposed National Coal Exchange of India Limited. This approval marks a key regulatory milestone towards the establishment of a structured market platform for physical coal trading in India.
Company will soon apply to Coal Controller Organization to secure license for setting up Coal Exchange under relevant regulatory provisions.
The proposed exchange is intended to facilitate electronic spot trading of coal through standardized contracts, enabling transparent price discovery and defined settlement mechanisms for market participants including producers, consumers and traders. The initiative is aligned with the Government of India’s coal sector reforms, including commercial mining and liberalised coal sales, and is expected to support the development of a formal, transparent and efficient market structure for coal transactions, subject to incorporation of the entity and receipt of applicable approvals.
