NSE gets MCA nod for coal exchange name, proposes market-driven trading platform

The National Stock Exchange of India Ltd. (NSE) has received approval from the Ministry of Corporate Affairs (MCA) for reservation of the name “National Coal Exchange of India Limited,” marking a key step towards setting up a coal trading platform.

According to NSE, the approval is limited to the reservation of the proposed company name and does not constitute any operational or regulatory licence.

The development follows the exchange’s board approval in February to establish a wholly owned subsidiary for the initiative. The proposed entity will focus on creating a structured marketplace for coal trading in India.

NSE has indicated an initial capital infusion of up to Rs 100 crore for the venture and plans to retain a 60 per cent stake, with the remaining 40 per cent to be offered to other shareholders.

Commenting on the development, NSE MD and CEO Ashishkumar Chauhan said the approval marks an important milestone and that the exchange will take necessary steps to apply for the required licence from the Coal Controller Organisation in line with regulatory requirements.

The proposed coal exchange aims to address inefficiencies in the sector by establishing a transparent, market-driven platform for trading. The exchange expects this to improve price discovery and enhance allocation efficiency across the coal value chain.

The proposed coal exchange could have implications for coal-producing states like Jharkhand, where pricing transparency and efficient allocation remain key sectoral concerns. A market-based trading platform may gradually influence how coal is priced and distributed across industries.