Stock exchange NSE’s board on Friday approved a proposal to create a coal exchange as its subsidiary. A number of names are being considered for the new bourse, including National Coal Exchange, India Coal Exchange and Bharat Coal Exchange, pending approval from the Corporate Affairs Ministry, according to sources.
NSE will hold a minimum stake of 60 per cent in the proposed coal exchange, with approval already in place for a capital infusion of up to Rs 100 crore.
The coal exchange will facilitate electronic trading of physical coal, offering facilities like standardised contracts and physical delivery.
The focus will be on bringing transparent price discovery to the coal market. There are also plans to introduce derivative products in the future, subject to regulatory approvals.
The establishment of the coal exchange will require regulatory nods from capital market regulator SEBI and the Coal Controller — the key regulatory authority for registering and regulating coal exchanges.
Doonited Affiliated: Syndicate News Hunt
This report has been published as part of an auto-generated syndicated wire feed. Except for the headline, the content has not been modified or edited by Doonited
