The Multi Commodity Exchange of India is set to invest up to Rs2 billion in specialised platforms for coal and minerals, aiming to boost transparency and standardisation in the country’s commodity sectors amid ongoing regulatory approvals.
Multi Commodity Exchange of India is preparing to spend as much as Rs2 billion on new trading platforms for coal and minerals, in a move that could deepen the country’s organised commodity markets and improve price discovery. According to reporting by Powerline, the exchange has outlined separate businesses for the two ventures and is working through the regulatory approvals needed to bring them into operation.
The plan has already cleared an important hurdle with the Securities and Exchange Board of India, which has approved an investment of roughly Rs1 billion for each business, according to the reports. MCX has also set up a wholly owned subsidiary for coal trading, a step first reported in June, signalling that the exchange is moving from concept to structure as it seeks to build dedicated market infrastructure for physical commodities.
Approval from the Coal Controller Organisation and the Indian Bureau of Mines is still required before the platforms can begin operating, since those bodies are the relevant licensing authorities. The broader aim, as described in the reports, is to create regulated, technology-driven venues that can standardise trading, support transparent pricing and expand formal market participation in sectors long dominated by bilateral deals.
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