Multi Commodity Exchange of India Ltd (MCX) on Friday said it has received approval from markets regulator Sebi to launch electricity derivatives. The electricity derivatives contracts to be introduced by MCX will help power distribution companies, and large consumers to hedge against price volatility and manage price risks more effectively, by enhancing efficiency in the power market, the commodity bourse said in a statement. "These contracts will offer participants a reliable, transparent, and regulated platform to manage power price risks, which are becoming more dynamic due to renewables and market-based reforms," Praveena Rai, MD & CEO of MCX, said.
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