NSE gets SEBI approval to launch monthly electricity futures

The National Stock Exchange (NSE) has received regulatory approval from the Securities and Exchange Board of India (SEBI) to launch monthly electricity futures contracts. This marks a key step in expanding India’s power market offerings.

NSE is now the second exchange, after the Multi Commodity Exchange (MCX), to gain SEBI’s nod for electricity derivatives. The futures contracts will help market participants hedge against price fluctuations in the power sector.

The move is expected to strengthen price discovery and risk management in the electricity market. It also complements the existing spot market by offering longer visibility to buyers and sellers.

NSE has operated Power Exchange India Limited (PXIL) since 2008. With the new approval granted on June 11, 2025, it plans a phased rollout of the contracts. Future plans may include quarterly and annual electricity derivatives, subject to additional regulatory clearances.

The introduction of these instruments could encourage capital investment across the power sector—from generation and transmission to distribution and retail.