The National Stock Exchange (NSE) has received SEBI's approval to invest in the National Coal Exchange of India Ltd. SEBI approval also marks a key milestone towards setting up the National Coal Exchange of India Ltd.

The National Coal Exchange of India will be a structured market platform for physical coal trading.

The exchange will now approach the Coal Controller Organisation to seek the necessary licence for establishing the coal exchange. The Coal Exchange will be set up under relevant regulatory provisions.

The National Coal Exchange is aimed at facilitating electronic spot trading of coal through standardised contracts. It will enable transparent price discovery and defined settlement mechanisms for participants, including producers, consumers and traders.

The initiative is expected to support the development of a formal, transparent, and efficient market structure for coal transactions, subject to incorporation of the entity and receipt of requisite approvals.

Earlier this week, the NSE received approval from the Ministry of Corporate Affairs (MCA) for reservation of the name "National Coal Exchange of India Limited," which is only for name approval.

The move follows NSE's board approval in February to set up a wholly owned subsidiary for the initiative, with a proposed initial capital infusion of up to Rs 100 crore. NSE plans to hold a 60 per cent stake in the venture, while the remaining 40 per cent will be offered to other shareholders.

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