The Multi-Commodity Exchange of India (MCX) received approval from the Securities and Exchange Board of India (SEBI) on April 17, 2026, under Regulation 38(2) of SECC Regulations to make a capital investment of up to ₹100 crore in the proposed Coal Exchange Company. According to The Economic Times, this marks a significant regulatory milestone towards establishing a formalised coal exchange in India. The approval enables MCX to proceed with setting up the coal exchange infrastructure.
Initially, MCX will hold a 100% stake in the coal exchange, acquired at a par value of ₹10 per share, and subsequently seek other partners to hold shares in its coal exchange arm. As reported by The Economic Times, the yet-to-be-incorporated subsidiary will be named MCX Coal Exchange Ltd, or MCX Coal Exchange of India Ltd., or such other name as may be approved by the Ministry of Corporate Affairs. The exchange will submit a license application to the Coal Controller Organization of India as and when prescribed, according to a regulatory filing dated Saturday.
With the new coal exchange, MCX aims to further deepen India's commodity market infrastructure by developing a regulated, technology-driven market for buying and selling coal. According to The Economic Times, the proposed Coal Exchange is aimed at developing a transparent, technology-driven market platform for buying and selling coal in India, designed to facilitate efficient and robust price discovery for the fuel. The domestic commodity exchange will leverage its leadership in commodity exchange governance, surveillance, and clearing and settlement mechanisms to develop and support a transparent and technology-driven coal ecosystem, as envisioned by the Government of India.
This development significantly expands MCX's energy portfolio, which already includes highly liquid derivatives contracts on crude oil and natural gas and the electricity futures contract launched last year. As reported by The Economic Times, with the new venture, MCX's energy portfolio will become comprehensive, positioning the exchange to offer a transparent, standardised digital platform for the physical delivery of coal at market-driven and robust prices. The proposed exchange will serve as an institutional mechanism to bring more structure and visibility to coal trade in the country.
MCX highlighted its existing leadership position, noting that it is India's leading Commodity Derivatives Exchange and the largest Commodity Options Exchange globally (FIA, 2024), with a market share of about 98% in terms of the value of commodity futures contracts traded in FY 2024–25. According to The Economic Times, operational since 2003, MCX offers trading across bullion, energy, metals, agri commodities and sectoral commodity indices, and provides dual advantages of fair price discovery and efficient risk management to the Indian commodity ecosystem. The exchange has forged strategic alliances with various international exchanges as well as Indian and international trade associations, reinforcing its credentials as a dynamic platform for commodity market participants.
