New Delhi, April 1 The National Stock Exchange (NSE) announced on Wednesday that it has partnered with Indian Gas Exchange Ltd (IGX) to introduce exchange-traded derivatives based on domestic natural gas prices.
As part of the collaboration, NSE will launch natural gas futures contracts linked to IGX's benchmark price index, the Gas IndeX of India (GIXI), which reflects pricing based on actual trades on the IGX platform.
In a statement, the exchange said it has received approval from the market regulator, Sebi, to launch Indian natural gas futures, with the launch date to be announced shortly.
The proposed contracts aim to provide a transparent and efficient risk management tool for stakeholders across the gas value chain, including producers, consumers, and market intermediaries.
"Our collaboration with IGX represents a significant milestone in the development of India's gas ecosystem," said NSE Chief Business Development Officer Sriram Krishnan.
"By introducing derivatives based on IGX benchmarks, we aim to create robust risk management tools aligned with the domestic gas market, enhance market efficiency, and deepen liquidity," he added.
This move is part of NSE's strategy to expand its commodity derivatives segment with products based on domestic benchmarks and evolving market needs.