During Monday’s trading session, the shares of the largest exchange in the commodity derivatives market segment in India surged nearly 7 percent to reach a new 52-week high, after the company announced receiving SEBI approval for the launch of Electricity Derivatives.
With a market cap of Rs. 40,498 crores, the shares of Multi Commodity Exchange of India Limited surged nearly 7 percent to hit a new 52-week high at Rs. 7,945.1 on BSE, as compared to its previous closing price of Rs. 7,419.65. The stock has delivered multibagger returns of around 118 percent in one year, and has gained by about 40 percent in the last one month.
What’s the News
According to the latest regulatory filings on the stock exchanges, Multi Commodity Exchange of India (MCX) Limited has received approval from the Securities and Exchange Board of India (SEBI) to launch Electricity Derivatives, marking a significant milestone in the advancement of India’s energy trading landscape.
This development highlights the support of the regulators—SEBI and the Central Electricity Regulatory Commission (CERC)—in fostering a dynamic and sustainable power market.
The Electricity Derivatives Contracts to be introduced by MCX are expected to provide generators, distribution companies, and large consumers with tools to hedge against price volatility and manage price risks more effectively, thereby enhancing efficiency in the power sector.
This landmark initiative positions MCX as a leader in innovation within the commodity trading space and reinforces India’s commitment to sustainable energy and capital market development. It also represents a pivotal step toward deepening the country’s energy markets and aligns with the broader vision of ‘Viksit Bharat’.
Financials & more
MCX reported a significant growth in its revenue from operations, showing a year-on-year rise of around 61 percent from Rs. 181 crores in Q4 FY24 to Rs. 291 crores in Q4 FY25. Similarly, its net profit increased during the same period from Rs. 88 crores to Rs. 135 crores, representing a growth of around 53 percent YoY.
MCX is a demutualised exchange and has permanent recognition from the Government of India to facilitate nationwide online trading, clearing and settlement operations of commodity derivatives. It is India’s leading commodity derivatives exchange with a market share of about 98 percent in terms of the value of commodity futures contracts traded in FY25.
Written by Shivani Singh
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