NSE To Launch Natural Gas Derivatives in Collaboration With IGX

The National Stock Exchange (NSE) on Wednesday said 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 -- Gas IndeX of India (GIXI), reflecting pricing based on actual trades on the IGX platform.

In a statement, the exchange said it has received approval from markets 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," NSE Chief Business Development Officer Sriram Krishnan said.

"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.

The move is part of NSE's strategy to expand its commodity derivatives segment with products based on domestic benchmarks and evolving market needs.