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Mint
5 days ago
- Business
- Mint
Sebi said to have accepted NSE's consent applications
Mumbai: The Securities and Exchange Board of India (Sebi) has accepted the settlement applications filed by the National Stock Exchange to resolve pending regulatory investigations, potentially paving the way for the long-delayed initial public offering (IPO) of India's largest stock exchange, according to a person familiar with the matter. Sebi is likely to issue a formal no-objection certificate (NOC) by the end of this month, the person said, adding that this would allow the NSE to proceed with filing its Draft Red Herring Prospectus for the IPO. NSE has offered to pay around ₹1,400 crore to settle pending cases in the Supreme Court. Under Sebi's settlement rules, entities can resolve probes by paying a monetary amount without admitting or denying guilt. 'The fact that an application has been filed for around ₹1,400 crore indicates that the two parties have arrived at a settlement amount. This, in turn, will clear the decks for Sebi to issue the NOC to NSE by month-end," the person said, requesting anonymity. A consent order is passed by Sebi when a regulated entity pays a certain fee without accepting or denying guilt. The filing of the consent applications was preceded by several rounds of discussions between Sebi and NSE over the settlement amount, among other issues. The settlement applications relate to multiple regulatory investigations, including the co-location and dark fibre cases. NSE and Sebi did not immediately respond to queries on the acceptance of the applications. NSE's IPO has been on hold since 2016. Once the NOC is received, NSE is expected to file its prospectus with the regulator. The price of unlisted NSE shares has surged from ₹1,500 to ₹2,300 in the past three months on hopes of Sebi issuing an NOC for the proposed listing. Another potential roadblock—Sebi's earlier insistence that stock exchanges must separate ownership of their clearing corporations—also appears to have been removed. Sebi chairperson Tuhin Kanta Pandey said at a press conference on 24 June that the regulator had put the proposal on hold due to feasibility concerns. He also said the regulatory clearance for NSE's listing was not contingent on these norms being implemented. NSE Clearing Ltd (NCL) and Indian Clearing Corp. Ltd (ICCL), wholly owned subsidiaries of NSE and BSE respectively, handle trade settlements and provide counterparty risk protection. NCL clears over 95% of trades in the equity cash and equity derivatives segments in India, according to Ashishkumar Chauhan, managing director and chief executive, NSE, during the company's March quarter earnings call. 'Even the clearing corporation hurdle has been put aside," said the person cited earlier. The co-location case stems from allegations dating back to 2015, when whistleblowers claimed some brokers received preferential access to NSE's trading systems by logging in early at its co-location facility. The system allowed these brokers to gain a trading advantage by receiving market data fractions of a second ahead of others. In 2019, Sebi issued multiple enforcement orders against NSE, its former officials, and brokers including OPG Securities. However, in September 2024, the regulator said it had found insufficient evidence of collusion between NSE and OPG. The dark fibre case involved allegations that certain brokers accessed NSE's co-location systems via faster, unauthorized fibre-optic lines. The regulator had imposed a ₹7 crore penalty on NSE in 2022, which was later overturned by the Securities Appellate Tribunal after NSE challenged it. Sebi has since filed two appeals in the Supreme Court—in September 2023 and again in February 2024—against the SAT order. These appeals are still pending, and NSE has been asked to respond.
Business Standard
12-06-2025
- Business
- Business Standard
NSE gets SEBI nod to launch monthly electricity futures
The National Stock Exchange of India (NSE) has received approval from the Securities and Exchange Board of India (SEBI) to launch monthly electricity futures contracts. This development marks a key step toward strengthening India's power markets and advancing the structural reforms outlined in the Electricity Act, 2003. According to a NITI Aayog report, Indias transition to net-zero emissions by 2070 will require annual investments exceeding $250 billion through 2047. By 2030, renewable energy sources like solar and wind are expected to account for over 50% of the countrys installed power capacity. A well-developed electricity derivatives market is crucial to attracting both domestic and global capital to support this transition. The new monthly electricity futures contracts aim to provide market participants with tools to hedge against price volatility, enabling more transparent and efficient price signals in the power sector. They are expected to spur investments across the electricity value chain, from generation to retail. Ashishkumar Chauhan, MD & CEO, NSE said, This approval is only the beginning of NSEs vision for a broader electricity derivatives ecosystem. Plans are underway to gradually introduce contracts for difference (CFDs) and other long-duration electricity derivatives such as quarterly and annual contracts subject to regulatory approvals The introduction of these contracts will follow a calibrated, phased approach to ensure market integrity and build investor confidence. Aligning the growth of both spot and futures electricity markets is essential to creating a stable, liquid ecosystem. Financially settled futures will allow effective risk hedging, while a robust day-ahead spot market will support reliable price discovery. NSE is committed to working closely with all market participants, regulators, and stakeholders to align efforts around enabling policies such as Market-Based Economic Dispatch (MBED) and market coupling initiatives by CERC, as well as SEBIs framework on CFDs. Clearing and settlement of the new contracts will be handled by NSE Clearing, a Qualified Central Counterparty (QCCP) recognized by SEBI. The entity is supported by a strong net worth and a well-established settlement guarantee mechanism.
Mint
11-06-2025
- Business
- Mint
NSE gets Sebi nod to launch electricity derivatives
The National Stock Exchange of India (NSE) has received approval from the markets regulator to launch monthly electricity derivatives contracts, said the exchange in a filing. Plans are underway to gradually introduce contracts for difference (CFDs) and other long-duration electricity derivatives such as quarterly and annual contracts, subject to regulatory approvals, Ashishkumar Chauhan, NSE managind director (MD) and chief executive officer (CEO), said. The filing said that the launch of monthly electricity futures will provide market participants with effective hedging tools against electricity price volatility, enable more accurate price signals in the power sector, and encourage capital investments across the electricity value chain—generation, transmission, distribution, and retail. Electricity derivatives gain prominence as India's journey toward achieving its net-zero emissions target demands substantial investment, estimated at over $250 billion annually until 2047, according to a Niti Aayog report. 'By 2030, renewable energy sources such as solar and wind are expected to contribute over 50% of the nation's installed power capacity. A robust and dynamic electricity derivatives market is essential to attract this scale of climate finance from both domestic and global investors,' the release said. 'A calibrated and phased approach will ensure both market integrity and investor confidence. It is crucial for the spot and futures electricity markets to evolve in tandem to create a virtuous cycle of liquidity and stability. A financially settled futures market will allow participants to hedge their risks effectively, while a robust day-ahead spot market will ensure reliable price discovery,' Chauhan said. 'Our strong understanding of both spot and derivatives markets uniquely positions us to build an integrated and liquid electricity derivatives market,' NSE said in the release. Recently, the Multi Commodity Exchange of India (MCX) also received approval from the Securities and Exchange Board of India (Sebi) to launch electricity derivatives. MCX's shares had risen over 5% and reached a record high of ₹ 7,820 on the BSE after the exchange obtained regulatory clearance to introduce electricity derivatives on 9 June.
Business Upturn
11-06-2025
- Business
- Business Upturn
NSE gets SEBI nod to launch monthly electricity futures, aims to deepen power market reforms
By News Desk Published on June 11, 2025, 19:21 IST The National Stock Exchange of India (NSE) has received regulatory approval from the Securities and Exchange Board of India (SEBI) to launch monthly electricity futures contracts, marking a significant milestone in India's efforts to deepen its power markets and drive long-term structural reforms under the Electricity Act, 2003. The new futures contracts will provide market participants with tools to hedge against electricity price volatility, offer more accurate price signals, and encourage capital investment across the electricity value chain, including generation, transmission, distribution, and retail. According to Niti Aayog, India's transition to net-zero emissions by 2070 will require over $250 billion in annual investment until 2047, with more than 50% of installed power capacity expected to come from solar and wind by 2030. A liquid electricity derivatives market is seen as critical for attracting large-scale domestic and international climate finance. NSE MD & CEO Ashishkumar Chauhan stated that the approval is 'only the beginning' of the exchange's broader electricity derivatives strategy. Future offerings could include contracts for difference (CFDs) and longer-duration contracts like quarterly and annual futures, subject to regulatory clearances. The contracts will be financially settled and cleared by NSE Clearing Limited, a SEBI-recognized Qualified Central Counterparty (QCCP) with a robust settlement mechanism and strong capital base. NSE was the first Indian exchange to enter the electricity space, having established Power Exchange India Limited (PXIL) in 2008. With its combined expertise in spot and derivatives markets, NSE aims to build a comprehensive and liquid electricity derivatives ecosystem, aligned with key policy initiatives like Market-Based Economic Dispatch (MBED) and market coupling by CERC. This development strengthens NSE's position as a global leader in derivatives, having been ranked the world's largest derivatives exchange by trading volume in 2024 by the Futures Industry Association (FIA). News desk at
Economic Times
11-06-2025
- Business
- Economic Times
NSE gets Sebi nod to launch electricity futures. 3 things exchange expects to achieve
NSE has received approval from the capital market regulator Securities and Exchange Board of India (Sebi) to launch monthly electricity futures contracts. The move comes with a view to deepen India's power markets and support long-term structural reforms initiated under the Electricity Act, 2003. ADVERTISEMENT In a press release issued on Wednesday, NSE called it a "significant milestone". "India's journey toward achieving its net-zero emissions target demands substantial investment—estimated at over $250 billion year on year till 2047 as per Niti Aayog report. By 2030, renewable energy sources such as solar and wind are expected to contribute over 50% of the nation's installed power capacity. A robust and dynamic electricity derivatives market is essential to attract this scale of climate finance from both domestic and global investors," the release said. Through the launch of monthly electricity futures, the NSE aims to achieve 3 things :1) Provide market participants with effective hedging tools against electricity price volatility.2) Enable more accurate price signals in the power sector. ADVERTISEMENT 3) Encourage capital investments across the electricity value chain—generation, transmission, distribution, and on the development, NSE MD & CEO Ashishkumar Chauhan said, "This approval is only the beginning of NSE's vision for a broader electricity derivatives ecosystem. Plans are underway to gradually introduce contracts for difference (CFDs) and other long-duration electricity derivatives such as quarterly and annual contracts subject to regulatory approvals.' ADVERTISEMENT In his view, a calibrated and phased approach will ensure both market integrity and investor confidence and it is crucial for the spot and futures electricity markets to evolve in tandem to create a virtuous cycle of liquidity and stability.A financially settled futures market will allow participants to hedge their risks effectively while a robust day-ahead spot market will ensure reliable price discovery, Chauhan said. ADVERTISEMENT Sebi nod to the NSE comes on the heels of an approval given to MCX to launch its own electricity derivatives. Also Read: MCX gets Sebi nod to launch electricity derivatives (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
