According to the executive director of SEBI VS Sundaresan, the market regulator Securities and Exchange Bureau of India is planning to start spot trading in coal by setting up a spot exchange.

Special speech delivered during the two-day “Commodity Market Outlook 2022”, organized by Activity area On Thursday, he said: “Once the coal spot trade stabilizes, coal derivatives will also begin. This bodes well for the energy sector.

Earlier this year, officials from the Coal Ministry said the government plans to have a mature business platform by the time commercial coal mines become operational in 5-7 years, when 40% of the country’s coal will be mined by companies other than Coal. India Ltd.

On November 25 of last year, the Ministry of Coal launched a call for tenders for the selection of a consultant to assist the ministry in setting up the first coal exchange platform of the country. The Coal Exchange will facilitate an efficient market-based pricing mechanism and facilitate price discovery in addition to ensuring transparent market mechanisms.

Electricity derivatives

Sundaresan said trading in electricity derivatives will begin shortly, as operational and legal issues have been resolved.

The Multi Commodity Exchange has obtained approval from SEBI to launch the derivatives and has prepared specifications for the contract, sources said. The exchange is expected to launch derivatives next month.

The electricity crisis in China and other parts of the world, including India, also adds importance to electricity derivatives.

Gold exchange

Sundaresan said SEBI is in the process of issuing detailed operational guidelines to make the gold exchange functional in the coming months. The Gold Exchange will attract retail players to the regulated market and provide transparency in the pricing of the precious metal.