The National Stock Exchange of India (NSE) has received approval from the Securities and Exchange Board of India (Sebi) to launch monthly electricity futures contracts, marking a significant development in India’s power market reform agenda.The exchange said the move is aimed at giving market participants tools to hedge against electricity price volatility and provide better price signals across the electricity value chain — including generation, transmission, distribution and retail.“This approval is only the beginning of NSE’s vision for a broader electricity derivatives ecosystem,” said Ashishkumar Chauhan, MD & CEO of NSE, as quoted PTI. “Plans are underway to gradually introduce contracts for difference (CFDs) and other long-duration electricity derivatives such as quarterly and annual contracts, subject to regulatory approvals.”The exchange added that a calibrated and phased rollout of products will help ensure market integrity and investor confidence as the segment matures.A financially settled electricity futures market is expected to complement the spot power market, creating a more liquid and stable pricing ecosystem. The NSE said such parallel development between spot and futures segments will help build a virtuous cycle for risk management and investment flows in the power sector.The NSE was the first stock exchange in India to establish an electricity exchange, having launched Power Exchange India Limited (PXIL) in 2008.Last week, the Multi Commodity Exchange of India (MCX) also received Sebi approval to launch electricity derivatives, signaling regulatory support for greater financialisation of India’s power markets.