Latest news with #MonthlyElectricityFutures
The Hindu
4 days ago
- Business
- The Hindu
SEBI may impose additional margin requirements in times of high volatility in electricity futures
Securities and Exchange Board of India (SEBI) may impose higher additional margins for electricity futures in times of high volatility , said Tuhin Kanta Pandey, Chairperson of Securities and Exchange Board of India (SEBI) at the launch of Monthly Electricity Futures here on Friday. 'Electricity has been categorised as a high volatile commodity, thereby attracting a high initial margin requirements. This will discourage undue speculative activity. Additional margins may be imposed in times of heightened volatility,' said Mr. Pandey at the event. Electricity futures are future contracts with electricity as the underlying commodity which was introduced in order to arrest volatility in electricity prices and intended for manufacturers, power generators and distributors to hedge losses at times of price spike. The product was introduced after consultation with a joint working group with SEBI, NSE and Central Electricity Regulation Commission(CERC). The product will b monthly expiry and 95% of the market share in this product is with NSE and the rest with MCX. Trading in the product started on Monday. 'This is a very new product and will take time for stake holders to understand. The initial liquidity is expected to come from industry participants after which the financial participants will follow,' said Anindya Banerjee , Commodities analyst at Kotak Securities.
Business Standard
15-07-2025
- Business
- Business Standard
NSE launches Monthly Electricity Futures, trades cross 200 million units
The National Stock Exchange (NSE) successfully launched Monthly Electricity Futures (ELECMBL) contracts on 14 July 2025, marking a major milestone in the evolution of India's power derivatives market. By 2:00 PM on the launch day, trading volumes crossed 4,000 lots, translating to over 200 million units of electricity. The total turnover stood at ₹87.36 crore, with a volume-weighted average price of Rs 4,368 per megawatt-hour (MWh). The debut trade opened at Rs 4,430/MWh, and prices hovered around Rs 4,364/MWh at last count, indicating strong participation from a diverse set of players including power generators, discoms, industrial consumers, and intermediaries. The new contracts offer a transparent, risk-managed platform for hedging price volatility, supporting long-term electricity planning, and aligning with India's clean energy ambitions.
India Gazette
14-07-2025
- Business
- India Gazette
NSE launches monthly electricity futures, trades over 200 million units on Day 1
Mumbai (Maharashtra) [India], July 14 (ANI): The National Stock Exchange of India (NSE) on Monday announced the successful launch of its Monthly Electricity Futures (ELECMBL) contracts, marking a significant step forward in the development of India's electricity derivatives market. Electricity Futures are standardised financial contracts that allow buyers and sellers to lock in the price of electricity for future delivery at a specified time and quantity. According to NSE, as of 2:00 PM on the first day of trading, more than 4,000 lots, representing over 200 million units of electricity, had been traded. The contracts saw a total turnover of Rs 87.36 crore, with a volume-weighted average price of 4,368 per megawatt-hour (MWh). The first trade was executed at Rs 4,430/MWh, and by mid-afternoon, prices were trending at around Rs 4,364/MWh. The launch witnessed healthy participation from a wide spectrum of market players, including power generators, distribution companies (discoms), large industrial consumers, and financial intermediaries. 'This launch provides a transparent, risk-managed platform for participants to hedge electricity price volatility, support long-term power planning, and contribute to India's broader energy transition goals,' NSE said in a statement. The National Stock Exchange of India (NSE) was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data. 'NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology. NSE is the world's largest derivatives exchange by trading volume (contracts) as per the statistics maintained by the Futures Industry Association (FIA) for the calendar year 2024,' NSE said in a press release. (ANI)
Hans India
14-07-2025
- Business
- Hans India
NSE monthly Electricity Futures receive decent participation in 1st session
Mumbai: The National Stock Exchange of India (NSE), which launched the Monthly Electricity Futures (ELECMBL) contracts, said on Monday that it has received healthy participation. The move can be seen as a significant step forward in the development of India's electricity derivatives market. According to NSE's data, 6,863 contracts traded during the market hours, representing a value of Rs 149.81 crore. The first trade opened at Rs 4,430/MWh and settled at Rs 4,364/MWh. Meanwhile, its intraday high and lows stood at Rs 4,430/MWh and Rs 4,301/MWh, respectively. The kind of interest that the newly-launched derivatives got, reflected healthy participation across participants, including power generators, discoms, large industrial consumers, and market intermediaries, NSE said. The exchange said the introduction of electricity futures derivatives will give participants a clear, risk-managed platform to support long-term power planning, hedge against volatility in electricity prices, and support India's larger energy transition objectives. NSE is the biggest derivatives exchange in the world by trading volume (contracts), as per the Futures Industry Association (FIA) data for the year 2024. Based on data from the Securities and Exchange Board of India (SEBI), the company started operations in 1994 and has been the biggest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995. Trading, clearing members, and listed companies are subject to the exchange's and SEBI's rules and regulations, NSE said. It is ranked second in the world in the equity segment by number of trades (electronic order book) in 2024, as per the statistics maintained by the World Federation of Exchanges (WFE). Meanwhile, the Indian stock market ended the first trading session of the week in negative territory, amid selling in IT stocks and fresh global trade tensions over US tariffs. Sensex closed at 82,253.46, down 247.01 points or 0.30 per cent against last session's closing of 82,500.47.
Mint
14-07-2025
- Business
- Mint
NSE launches monthly electricity futures contracts for derivative investors. Details here
The National Stock Exchange (NSE) announced on Monday, 14 July 2025, that it has launched its new monthly electricity futures contracts for derivative investors, with the aim of helping them hedge their bets against electricity price volatility. 'The National Stock Exchange of India (NSE) is pleased to announce the successful launch of the Monthly Electricity Futures (ELECMBL) contracts today, marking a significant step forward in the development of India's electricity derivatives market,' according to the press release. NSE aims to make this launch attractive for market participants, giving derivative investors a transparent asset class on a risk-managed platform to hedge their investments amid electricity price volatility. The investors will also be able to support 'long-term planning' and contribute their share to the nation's wider energy transition objective. As of 2:00 p.m. on Monday, 14 July 2025, the Monthly Electricity Futures contracts recorded more than 4,000 lots of trading which represents more than 200 million units of electricity, according to the official data release. Till the afternoon session, the total turnover trade for the futures contract crossed 87.36 crore in volumes, with the volume-weighted average price at ₹ 4,368 per megawatt-hour (MWh). After the trading opened at ₹ 4,430/MWh, and as of 2:00 p.m. on Monday, the price reached around ₹ 4,364/MWh, which showed the healthy participation of the derivative market investors. Market participants like power generators, discoms, and large industrial consumers, and market intermediaries were part of the trading session on the first day for the futures contract. According to Mint's earlier report from 28 June 2025, NSE announced a liquidity enhancement scheme for the electricity futures contracts, which were launched today. In the circular dated 27 June 2025, NSE said that the enhancement scheme would become effective from 11 July 2025. '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,' the exchange informed investors through an official release. NSE received the green signal from the markets regulator, the Securities and Exchange Board of India (Sebi), in May 2025 to launch electricity futures contracts, given the demand for power sector derivatives in the global market. Read all stories by Anubhav Mukherjee Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
