This comes after NSE approved the plan in February to set up a wholly owned subsidiary, with the proposed names including ‘National Coal Exchange’, ‘Bharat Coal Exchange’ and ‘India Coal Exchange’. The stock exchange has committed an initial capital infusion of up to Rs 100 crore for the new company. It will hold a 60% stake in the venture, with the remaining 40% stake offered to other shareholders.
‘Key milestone achieved’
“We acknowledge and appreciate the approval received from the Ministry of Corporate Affairs for the reservation of the name ‘National Coal Exchange of India Limited.’ This is a key milestone achieved, and in due course, we will be taking the necessary actions for applying for the requisite license with the Coal Controller Organization in accordance with applicable regulatory requirements,” said NSE MD and CEO Ashishkumar Chauhan.
NSE’s proposed coal exchange seeks to create a transparent, market-driven platform for trading, potentially improving price signals and allocation efficiency across the sector. Earlier last year, the government had announced plans to establish a coal trading platform to buy and sell domestically produced coal amid surging output.
Live Events
“The platform will enable electronic trading of physical coal through standardised contracts and facilitate physical delivery and, in future, derivative products, subject to regulatory approval,” NSE had said earlier, adding that the lack of a unified trading platform has resulted in price inefficiencies, limited access for smaller participants and the absence of a reliable spot benchmark. It will submit a licence application to the Coal Controller Organisation of India for the proposed exchange.
Also read: Anthropic’s new Claude Mythos model: A new threat in the waiting for Indian IT stocks?
State-owned Coal India currently accounts for nearly three-quarters of the more than 1 billion tonnes of coal mined in India, the world’s second-largest coal market after China. Notably, this comes ahead of NSE’s much-awaited initial public offering (IPO).
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)