New Delhi, April 17: The National Stock Exchange (NSE) on Thursday said it has received approval from markets regulator Sebi to invest in the proposed National Coal Exchange of India Ltd.
The approval marks a key regulatory milestone towards setting up a structured market platform for physical coal trading in the country, NSE said in a statement.
Next steps include licensing and setup
The exchange will soon approach the Coal Controller Organisation to obtain the necessary licence for establishing the coal exchange under relevant regulatory provisions.
The proposed National Coal Exchange is aimed at facilitating electronic spot trading of coal through standardised contracts, enabling transparent price discovery and defined settlement mechanisms for participants, including producers, consumers and traders.
Push for transparent coal trading ecosystem
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.
Also Watch:
Ownership structure and investment plan
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.
(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
