India's NSE to set up unit for proposed national coal trading exchange
India's National Stock Exchange has approved a new unit to manage a national coal trading platform. This platform will allow electronic trading of physical coal using standardized contracts. It aims to address price inefficiencies and improve acce...
By Reuters |
Reuters
India's National Stock Exchange (NSE) on Friday approved the creation of a unit to run a proposed national coal trading exchange.
Last year, India announced plans to establish a coal trading platform to buy and sell domestically produced coal amid surging output.
NSE will hold at least a 60% stake in the coal exchange, with the remaining 40% to be potentially allocated to other shareholders, the exchange operator said in a filing.
"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 said.
The exchange operator said 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.
State-owned Coal India currently accounts for about three-quarters of the more than 1 billion tonnes of coal mined in India, the world's second-largest coal market after China.
NSE said it will submit a licence application to the Coal Controller Organisation of India for the proposed exchange.
Last year, India announced plans to establish a coal trading platform to buy and sell domestically produced coal amid surging output.
NSE will hold at least a 60% stake in the coal exchange, with the remaining 40% to be potentially allocated to other shareholders, the exchange operator said in a filing.
"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 said.
The exchange operator said 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.
State-owned Coal India currently accounts for about three-quarters of the more than 1 billion tonnes of coal mined in India, the world's second-largest coal market after China.
ADVERTISEMENT
NSE said it will submit a licence application to the Coal Controller Organisation of India for the proposed exchange.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
