By Admin 
The National Stock Exchange (NSE) has taken a big step so that the important sector like electricity is now being included in the financial market. The NSE has announced that it has been going to introduce electricity futures since 11 July 2025 and is also being introduced a special liquidity enhancement scheme (LES) to make it successful.
What is Electricity Futures?
Electricity futures are a type of financial contract, in which buyers and sellers already decide the price of electricity on any future date. It does not actually do electricity delivery, only the price hedging or trading. People participating in it can be- any financial institution approved by trading members, corporate buyers, power producing companies, transmission companies or SEBI.
What is the purpose of NSE?
NSE believes that in a country like India, where electricity consumption is increasing rapidly, the market of power derivatives can also be very large. This is the reason that in May 2025, the NSE received approval to launch electricity futures from regulators. Now an incentive -based scheme has been brought to make it more popular.
Market Makers will get a thick reward
Under the LES scheme, NSE will appoint two “Market Makers” (Market Makers – MM1 and MM2), which will continuously put a price of by -cell in this new segment to maintain liquidity in the market. For this, the NSE has kept a bidding process and the selected people will be given this responsibility for 6 months.
What will be the reward?
Market Maker 1 (MM1) will get an incentive amount of up to Rs 85 lakh every month. At the same time, Market Maker 2 (MM2) will be given a reward of up to Rs 45 lakh every month. Provided that they fulfill all the conditions.
What are the conditions of becoming a market maker?
The NSE has set 4 major conditions for this- the first condition, there should be a net worth of at least 5 crore. Second condition, no serious disciplinary action has been taken in the last one year. The third condition, the member should have algo registration in the Commodity derivatives segment. The fourth and final condition is that the member or his group company should have experience or understanding in any part of the power sector, such as generation, transmission, distribution, power trading, equipment supply, or EPC (Engineering, Procurement and Construction).
Last date of registration
Whatever market makers want to participate in this scheme, they will have to register in NSE by 2 July 2025.
Will this new scheme change?
This scheme of NSE can make electricity trade in India more transparent, futuristic and financially safe. With this, both power producers and buyers will be able to manage the prices better and will be able to avoid the fluctuations of sudden upcoming prices. This step is considered a big effort to bring India to the level of global financial markets in the power sector.
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