The Multi Commodity Exchange (MCX), India's leading commodity exchange, has received approval from the Securities and Exchange Board of India (Sebi) to establish a coal exchange subsidiary. This approval, granted on April 17, allows MCX to invest up to ₹100 crore (approximately $12 million USD) to meet the minimum net worth requirements under the draft Coal Exchange Rules. The new entity, likely named MCX Coal Exchange Ltd or MCX Coal Exchange of India Ltd, will initially be wholly owned by MCX, with plans to potentially include strategic partners later. The coal exchange aims to provide a transparent and standardized digital platform for physical coal delivery at market-linked prices, enhancing price discovery and transaction efficiency in the coal market. This move is significant as coal is a vital fuel for India's power generation and various industrial sectors. Additionally, it strengthens MCX's presence in the energy commodities market, which already includes derivatives contracts for crude oil, natural gas, and electricity futures. Following the announcement, MCX shares traded higher by 0.56%, reaching ₹2,871.30 (approximately $35.00 USD) on the National Stock Exchange (NSE).