IEX subsidiary seeks licence for India's first dedicated coal exchange

Indian Coal Exchange, the coal trading arm of stock exchange operator India Energy Exchange (IEX), has filed an application seeking a licence to operate India's first dedicated physical coal exchange. The move comes as the government looks to modernise the country's coal trading infrastructure and enhance market transparency in the sector.

The proposed exchange will facilitate spot trading of coal with physical delivery mechanisms, leveraging digital technology to streamline transactions between buyers and sellers. Operating under the Coal Exchange Rules, 2026, the platform is designed to provide standardised pricing, quality assurance, and logistics coordination for coal trades across India.

The initiative addresses longstanding concerns about coal market inefficiencies and limited price discovery mechanisms in India's coal sector. By centralising trading on a regulated platform, the exchange aims to reduce transaction costs, improve transparency, and enable better participation from smaller buyers and sellers who currently face barriers in direct coal procurement.

IEX, which operates India's leading energy exchange platforms for electricity and renewable energy certificates, has positioned the coal exchange as a natural extension of its existing market infrastructure. The subsidiary's experience in energy trading and settlement systems is expected to strengthen the technical capabilities of the coal marketplace.