Latest news with #ElectricityFutures
Time of India
04-08-2025
- Business
- Time of India
MCX shares surge 5% as Q1 PAT soars 83% YoY, 1:5 stock split announced
Shares of Multi Commodity Exchange (MCX) surged 4.6% to an intraday high of Rs 7,944 on the BSE on on Monday following the announcement of robust Q1 results and a 1:5 stock split aimed at increasing retail investor participation. MCX reported a 60% year-on-year (YoY) surge in total income for the quarter ended June 30, reaching Rs 405.82 crore—its highest-ever quarterly revenue. Profit after tax (PAT) rose sharply by 83% YoY to Rs 203.19 crore, while earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rs 274.27 crore. Explore courses from Top Institutes in Please select course: Select a Course Category Cybersecurity Data Analytics Leadership Technology Project Management Operations Management MBA Healthcare healthcare Data Science Digital Marketing MCA Artificial Intelligence Finance Management Design Thinking others PGDM Data Science Degree Product Management Public Policy Others CXO Skills you'll gain: Duration: 10 Months MIT xPRO CERT-MIT xPRO PGC in Cybersecurity Starts on undefined Get Details Alongside the strong financial performance, MCX's board approved a 1:5 stock split to make its shares more affordable and accessible to retail investors. The proposed split will reduce the face value of each share from Rs 10 to Rs 2, subject to shareholder and regulatory approvals. The move aims to increase market participation, broaden the shareholder base, and boost trading volumes. The exchange's operational performance also remained strong, with average daily turnover surging 80% YoY to Rs 3.1 lakh crore. The increase was driven by higher participation from institutional and MSME hedgers, supported by an expanded product offering. MCX's Managing Director and CEO, Praveena Rai, stated that the exchange began FY26 on a 'positive note,' citing the introduction of new products such as Electricity Futures and expanded bullion and agri contracts, which have strengthened the risk management landscape. MCX also achieved a significant global milestone, emerging as the world's largest commodity options exchange in 2024. It ranked sixth globally among commodity exchanges, up from seventh place in 2023, according to data from the Futures Industry Association (FIA). On Friday, the shares of MCX closed 1.3% lower at Rs 7,594.35 on the BSE. Also read: Rekha Jhunjhunwala exits Nikhil Kamath, Madhusudan Kela-backed smallcap stock with 111% returns in 3 years ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
01-08-2025
- Business
- Time of India
MCX announces 1:5 stock split as exchange reports record revenue in Q1
Multi Commodity Exchange (MCX) on Friday reported a 60% year-on-year jump in total income to Rs 405.82 crore for the quarter ended June 30 its highest-ever quarterly revenue. Alongside the robust earnings, the exchange's board approved a 1:5 stock split to make the stock more affordable and accessible to retail investors. Explore courses from Top Institutes in Please select course: Select a Course Category Management Degree MBA Leadership Data Science CXO PGDM Digital Marketing healthcare Product Management Data Analytics Operations Management Cybersecurity Technology Others Artificial Intelligence Data Science Project Management MCA Finance Public Policy Design Thinking Healthcare others Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK GMPBE India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIM Kozhikode CERT-IIMK General Management Programme India Starts on undefined Get Details Skills you'll gain: Duration: 9 Months IIM Calcutta CERT-IIMC APSPM India Starts on undefined Get Details The proposed split will reduce the face value of MCX shares from Rs 10 to Rs 2 each, subject to shareholder and regulatory approvals. The primary objective of a stock split is to make shares more affordable and liquid, especially for retail investors. When a company's stock price becomes too high, it may discourage small investors from buying in. By reducing the per-share price through a split, companies aim to increase participation, broaden the shareholder base, and improve trading volumes. Profit after tax in the first quarter rose 83% year-on-year to Rs 203.19 crore, while EBITDA stood at Rs 274.27 crore. The exchange's average daily turnover surged 80% year-on-year to Rs 3.1 lakh crore, driven by higher participation from institutional and MSME hedgers and a broader product offering. MCX MD and CEO Praveena Rai said the exchange began FY26 on a 'positive note,' adding that new products like Electricity Futures and expanded bullion and agri contracts had broadened the risk management landscape. MCX emerged as the world's largest commodity options exchange in 2024 and ranked sixth globally among commodity exchanges, up from seventh place in 2023, according to FIA data. Shares of MCX closed 1.2% lower on Friday.
Business Standard
08-07-2025
- Business
- Business Standard
MCX launches Electricity Futures Contract
With effect from 10 July 2025 Multi Commodity Exchange of India announced the launch of the Electricity Futures Contract, effective from Thursday, 10 July 2025, marking a significant milestone in the development of the country's energy derivatives market. MCX believes this launch is timely, as the electricity sector is witnessing significant growth with a need to manage price stability, fluctuating demand, fuel costs, and market developments. The Electricity Futures contract will help power generators, distribution companies, large industrial consumers, and financial participants with a transparent, liquid, and reliable hedging mechanism. It will also promote investors with a widely used commodity to add to their portfolio. The new Electricity Futures Contract aims to meet the growing demand for structured electricity price risk management instruments. The contract will be available for all 12 calendar months of the year, with trading initially open for the current and next three months. The trading unit is 50 MWh, quoted in Indian Rupees per MWh (excluding taxes and levies), with a tick size of ₹1 per MWh. The contract will be cash settled based on the Volume Weighted Average of the Unconstrained Market Clearing Price (UMCP) of the Day Ahead Market (DAM) at the Indian Energy Exchange (IEX) for all calendar days in the expiry month. The contract will follow SEBI's Daily Price Limits (DPL) for market stability, with an initial slab of 6%, extendable up to 9% on a given day. The initial margin requirement is a minimum of 10% or volatility VaR based margins, whichever is higher. Client level position limits are capped at 3 lakh MWh or 5% of the market-wide open interest whichever is higher.
Mint
28-06-2025
- Business
- Mint
NSE to introduce liquidity enhancement scheme for upcoming electricity futures
The National Stock Exchange on Friday in an attempt to increase participation in the upcoming electricity futures contracts announced a liquidity enhancement scheme for the segment. In a circular on June 27, the NSE announced that the enhancement scheme will be effective from July 11. 'NSE is now pleased to introduce LES in Electricity Futures (Monthly Base Load) with effect from July 11, 2025, to encourage active participation and market development,' it said. The exchange — the largest in terms of market share in both derivative and cash segments — in May had received a green signal from the regulators to launch electricity futures contracts. The NSE has been focussing more on the segment, given the demand of power derivatives in the global market. Electricity futures are a financial contract whereby participants can lock the prices of electricity on a particular day for a certain month in the future. People who can trade in this future can include trading member, corporate buyer, generator, trader, or financial institution approved by the SEBI. No actual power is delivered through electricity futures. In its Friday circular, the NSE said that trading members who are interested in providing continuous quotes as Market Makers (MM) are required to register with the exchange. 'The exchange will appoint two Market Makers (MM1 & MM2) for Electricity Futures contract based on a competitive bidding procedure. The successful bidder shall be appointed as MM for a period of 6 months from the date of launch of LES on Electricity Futures,' it said. The interested people must register with the exchange by July 2, it said. In terms of incentives, Market Maker 1 will be eligible for a monthly incentive of ₹ 85 lakh, and Market Maker 2 will get ₹ 45 lakh provided they meet all quoting conditions. NSE specifies four criteria to become a market maker to trade in electricity futures: 1. Net worth of ₹ 5 crore. 2. No serious disciplinary action against the member in the last year. 3. Member should have algo registration in commodity derivatives segment. 4. The member (or group entity) must demonstrate a reasonable understanding, experience in or ownership of assets, companies, customers, or plants in at least one segment of electricity sector value chain, including generation, transmission, distribution, power trading, equipment supply, or Engineering, Procurement and Construction (EPC).
