National Stock Exchange of India on Wednesday announced a partnership with Indian Gas Exchange Limited to introduce exchange-traded derivatives linked to domestic natural gas prices, ANI reported.
The move is aimed at strengthening India’s natural gas market by offering tools that help manage price risks more effectively.
Under the collaboration, NSE will introduce natural gas derivative contracts based on IGX’s benchmark index, the Gas IndeX of India (GIXI). These contracts will reflect domestic market conditions, with pricing tied to actual gas trades on the IGX platform.
Officials said the new contracts are expected to provide a transparent way for companies, traders, and investors to manage price fluctuations. They will also open up fresh investment opportunities in the natural gas segment for financial institutions and registered brokers.
NSE has already received approval from the Securities and Exchange Board of India to launch natural gas futures. The exchange said details on the launch timeline will be shared soon.
Sriram Krishnan, Chief Business Development Officer at NSE, said the partnership marks an important step in developing India’s gas market. He noted that the exchange would become the first in the country to introduce energy derivatives based on a domestic benchmark.
According to NSE, the initiative is part of its broader plan to expand its commodity derivatives offerings and align them more closely with physical markets.
The collaboration is expected to improve market efficiency, increase participation, and support the growth of a more transparent and competitive natural gas sector in India.
