India’s leading stock exchange, the National Stock Exchange will launch electricity futures trading from July 11, 2025, along with a special Liquidity Enhancement Scheme (LES) to encourage active participation. The Exchange announced the development through a circular on Saturday.
These contracts, available on a monthly basis, are aimed at helping market participants manage price risks in the power sector while deepening the commodity derivatives market.
In a media briefing held recently, the exchange talked about its plans to eventually launch quarterly and annual contracts as well.
The LES will run for six months and is designed to improve market liquidity and ensure efficient price discovery. As part of the scheme, NSE will appoint two market makers through a bidding process. The deadline to submit bids is July 2, 2025. Market Maker 1or MM1 will be responsible for quoting near-month contracts, while Market Maker 2 or MM2 will handle next-month and far-month contracts.
