MCX gets SEBI nod to set up coal trading subsidiary

Multi Commodity Exchange of India Limited (MCX) has received approval from the Securities and Exchange Board of India (SEBI) to incorporate a wholly owned subsidiary focused on coal trading.

The approval, granted on April 17, 2026, allows MCX to establish a regulated platform for coal price discovery. The proposed entity, expected to be named MCX Coal Exchange Ltd. or MCX Coal Exchange of India Ltd., will be set up with an investment of up to Rs 100 crore to meet minimum net worth requirements under the draft Coal Exchange Rules.

The move expands MCX’s presence in the energy segment, where it already offers derivatives in crude oil and natural gas, along with electricity futures. The coal exchange is intended to operate as a standardised digital platform for physical coal delivery, enabling transparent and market-driven pricing.

MCX stated that it will initially hold 100% equity in the subsidiary, with scope to induct strategic partners at a later stage. After incorporation, the entity will apply to the Coal Controller Organization of India for further approvals.