Indian electricity market ‘not ready’ for derivatives

Indian electricity market ‘not ready’ for derivatives

Electricity futures trading on India's most prominent commodities exchange, the Multi Commodities Exchange (MCX), began in January 2009, but the exchange has faced a legal challenge for initiating trading before it was authorised to do so. Amid reports last month that it had banned the trade, the Forward Markets Commission (FMC), the country's commodities market regulator, was also criticised for failing to stop trading sooner.

"I strongly feel that the FMC and the MCX have been in a hurry to la