The shares of Multi Commodity Exchange of India (MCX) jumped around 2.5 percent to hit a fresh all-time high on June 17 after Bloomberg News said citing people familiar with the matter that the commodities exchange plans to launch electricity derivatives this year itself.
MCX had announced earlier this month that it has received market regulator SEBI's approval to launch electricity derivatives. Bloomberg has now reported citing people familiar with the matter that the electricity futures will be introduced later this year.
Moneycontrol couldn't independently verify the report.
While announcing that it has received the go-ahead from Sebi, MCX had said the electricity derivatives contracts will help power distribution companies and large consumers hedge against price volatility and manage risks more effectively by enhancing efficiency in the power market.
"These contracts will offer participants a reliable, transparent, and regulated platform to manage power price risks, which are becoming more dynamic due to renewables and market-based reforms," Praveena Rai, MD & CEO of MCX had said on June 9.
"With India's growing focus on renewable energy and open access power markets, electricity derivatives can serve as a vital bridge between the physical and financial sectors," she added.
MCX shares have seen a strong surge recently, jumping nearly 23 percent in the past one month. The stock has gained a whopping 103 percent in the past one year, and is up over 26 percent in 2025 so far.
While MCX shares gained following the latest news, its rival Indian Energy Exchange (IEX) saw its share price decline by nearly 1.5 percent. The stock has declined over 5 percent in the past one month, but is up around 4 percent in 2025 so far.
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Notably, National Stock Exchange (NSE) too recently received Sebi's approval to launch monthly electricity futures contracts. NSE believes the launch of monthly electricity futures by NSE will provide market participants with effective hedging tools against electricity price volatility. It will also enable more accurate price signals in the power sector and encourage capital investments across the electricity value chain from generation, transmission, distribution, and retail.
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