The Multi Commodity Exchange (MCX) has announced that it has obtained approval from the Securities and Exchange Board of India (Sebi) to invest in a new coal exchange subsidiary. The proposed entity, likely to be named MCX Coal Exchange Ltd or MCX Coal Exchange of India Ltd, will receive an investment of up to ₹100 crore (roughly $12 million USD) to meet the minimum net worth requirements under the draft Coal Exchange Rules. Initially, MCX will maintain a 100% stake in the subsidiary, with plans to consider strategic partnerships in the future. The coal exchange aims to create a regulated and technology-driven marketplace that facilitates efficient price discovery for coal, which is crucial for India's power generation and industrial sectors. This initiative builds on MCX's existing energy derivatives business, which includes contracts for crude oil, natural gas, and electricity futures, thereby rounding out its offerings in the energy complex.