NewKerala.com

NSE Eyes Electricity Futures, Coal Exchange as Next Growth Engines

The National Stock Exchange (NSE) is targeting new growth segments, including electricity futures and a coal spot exchange. CEO Ashish Chauhan stated the exchange's expertise in managing high-speed markets provides a foundation to automate and bring efficiency to these new areas. The broader goal is to strengthen price discovery in critical energy and commodity sectors. The NSE also reported strong quarterly financial results, with net profit rising 15% sequentially.

Key Points: NSE Plans Electricity Futures, Coal Spot Exchange Expansion

  • Expanding into electricity futures
  • Setting up a coal spot exchange
  • Targeting metals & commodities
  • Leveraging high-speed market tech
  • Aiming to boost price discovery
2 min read

NSE eyes electricity futures and coal spot exchange as next growth drivers

NSE CEO Ashish Chauhan outlines plans to expand into electricity futures, a coal spot exchange, and metals to drive next phase of growth.

"One-third of India's wealth today is represented on the NSE. - Ashish Chauhan"

New Delhi, February 28

The National Stock Exchange is looking to expand its technological and market expertise into new segments such as electricity futures, a coal spot exchange, and other commodity markets, including metals, as part of its next phase of growth.

NSE MD and CEO Ashish Chauhan indicated in an interview with ANI that the exchange's experience in managing one of the world's fastest-moving markets provides a strong foundation for automating and modernising additional market segments.

Since the exchange processes crores of orders daily, accounting for a significant share of global order flow across exchanges, Chauhan believes the systems built for trading, clearing, settlement and risk management can be adapted to bring efficiency and transparency to newer markets.

Electricity futures are a key focus area, alongside efforts to establish a coal spot exchange.

"Given our experience of running trading, clearing, settlement, risk management in pretty much the fastest-moving market in the world today...Whatever we have learned should be used to upgrade and automate other markets," noted Chauhan.

"Currently, we are trying to automate electricity futures. We are now trying to set up a coal spot exchange. Some of the other commodities markets, including metals," he told ANI. The broader objective is to strengthen price discovery mechanisms in critical sectors such as energy and commodities, he said.

Beyond new product segments, Chauhan underscored the transformative role NSE has already played in India's economic growth. When the exchange began operations, India's total market capitalisation stood at around Rs 3.8 lakh crore.

That figure has since expanded to approximately Rs 470 lakh crore, reflecting a dramatic expansion in capital formation and investor participation. Looking ahead to India's ambition of becoming a developed nation by 2047, Chauhan views the NSE as a critical enabler of growth.

He said, "One-third of India's wealth today is represented on the NSE."

The stock exchange reported a 15 per cent quarter-on-quarter (QoQ) rise in consolidated net profit to Rs 2,408 crore for the third quarter ended December 2025 (Q3FY26), aided by higher trading volumes across segments.

Consolidated total income rose 6 per cent sequentially to Rs 4,395 crore in Q3FY26, compared with Rs 4,160 crore in the previous quarter, as per the statement released by the NSE.

- ANI

Share this article:

Reader Comments

P
Priya S
A coal spot exchange is long overdue. It can bring transparency and reduce the massive inefficiencies and... let's say, 'informal arrangements' in the current coal supply chain. Hope this leads to better prices for end consumers too.
R
Rohit P
NSE's growth story is incredible. From 3.8 lakh crore to 470 lakh crore market cap! It shows how deep capital markets have become in India. Excited to see them leverage this expertise in commodities. More power to them! 💪
S
Sarah B
While diversification is good, I hope the core equity market operations don't suffer. The article mentions 15% profit rise, which is great, but new ventures like coal and power are complex and heavily regulated. Needs careful execution.
V
Vikram M
Finally! A proper exchange for coal. This can help smaller power plants and industries get fair prices instead of dealing with middlemen. Hope SEBI and the power ministry give fast approvals. This is crucial for our energy security.
K
Karthik V
The ambition to become a developed nation by 2047 needs such robust financial infrastructure. NSE automating these critical markets is a step in the right direction. Strong price discovery in electricity and coal will benefit the entire economy.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50