MCX had received the approval from market regulator Securities and Exchange Board of India (Sebi) in June 2025. The launch of electricity futures is with a view to capitalize on the growing energy derivatives market in India as the electricity sector is witnessing significant growth, with a need to manage price stability, fluctuating demand, fuel costs, and market developments.
The electricity futures contract will help power generators, distribution companies, large industrial consumers, and financial participants with a transparent, liquid, and reliable hedging mechanism.
Here are 5 things
1) Contract start day: First business day of the launch month. A contract is launched 3 months prior to the expiry month, as per launch calendar.
2) Last day of trading: Business day immediately preceding the last calendar day of the contract expiry month. In case, it falls on a holiday, then the preceding business day. On the contract expiry day, the contract will close at 12 PM, prior to dissemination of spot price on the basis of Unconstrained Market Clearing Price (UMCP) of the corresponding Day Ahead Market(DAM) of Indian Energy Exchange (IEX).
3) Contract Duration: Four months is the trading period for these contracts.
4) Trading days and time: Monday to Friday between 9 am and 11:30 pm/11:55 pm
5) Contract specifications: 50 MWh with maximum order size of 50 times of trading unit while the tick size is Re 1 per MWh.
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