Mumbai, June 11 (IANS). The National Stock Exchange (NSE) said on Wednesday that it has received approval to launch a monthly Electricity Futures Contracts from the Security and Exchange Board of India (SEBI).
It is considered a major change for India’s power markets. This will support the long -term structural reforms launched under the Electricity Act, 2003.
The purpose of launching a monthly electricity futures contracts from the NSE is to provide a good hedging tool to the market partners against the fluctuations in the prices of electricity. Also, electrification is to encourage capital investment in value-chain such as generation, transmission, distribution and retail.
NSE MD and CEO Ashish Kumar Chauhan said, “This approval is only the beginning of the vision for the broad power derivative ecosystem of NSE. Under the regulatory approval, the quarter and annual contracts such as contracts for differential (CFD) and other long-term power dearly are working on a scheme to launch.”
Recently, the NSE CEO had said that the NSE DRHP is waiting for the No Objection Certificate (NOC) from SEBI to start the process and as soon as the exchange gets it, he will start the process of making DRHP.
Talking to the news agency IANS, Ashish Chauhan said, “The exchange has demanded a no objection certificate from the regulator. After getting the NOC, we will prepare our draft Red Herring Prospectors (DRHP) and then we will send it back to SEBI. After that they will take our time to approve it.”
The NSE introduced the country’s first fully automated screen-based order matching system in 1994. This innovation showed the world the emerging power of India in the IT region. Today NSE has become the world’s largest stock exchange.
-IANS
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