The National Stock Exchange on Friday in an attempt to increase participation in the upcoming electricity futures contracts announced a liquidity enhancement scheme for the segment.
In a circular on June 27, the NSE announced that the enhancement scheme will be effective from July 11.
“NSE is now pleased to introduce LES in Electricity Futures (Monthly Base Load) with effect from July 11, 2025, to encourage active participation and market development,” it said.
The exchange — the largest in terms of market share in both derivative and cash segments — in May had received a green signal from the regulators to launch electricity futures contracts. The NSE has been focussing more on the segment, given the demand of power derivatives in the global market.
What is an electricity future?
Electricity futures are a financial contract whereby participants can lock the prices of electricity on a particular day for a certain month in the future. People who can trade in this future can include trading member, corporate buyer, generator, trader, or financial institution approved by the SEBI. No actual power is delivered through electricity futures.
(This is a developing story. Check back for updates)
