Source: TH
Context:
The National Stock Exchange (NSE) has received approval from the Securities and Exchange Board of India (SEBI) to launch Indian Natural Gas futures.
This marks a step toward market-based price discovery for natural gas in India.
Key Features of the Futures Contracts
- Monthly futures contracts.
- At any time, 12 monthly contracts will be available for trading.
- Contract design and launch timeline to be announced later.
- Developed through collaboration between:
- NSE (derivatives market expertise)
- Indian Gas Exchange (IGX) (spot trading platform)
What Are Futures Contracts
- Financial contracts to buy or sell an asset at a predetermined price on a future date.
- Used for:
- Hedging price risk
- Speculation
- Price discovery
Common in commodities like oil, metals, and agricultural products.
