National Stock Exchange of India (NSE) and Indian Gas Exchange (IGX) to launch natural gas derivatives linked to domestic benchmark GIXI

Key facts

• National Stock Exchange of India (NSE) and Indian Gas Exchange Ltd (IGX) will introduce exchange-traded derivatives based on natural gas traded on the IGX platform.
• NSE will launch Indian natural gas derivative contracts linked to IGX’s benchmark price index GIXI (Gas IndeX of India).
• Pricing of the contracts will be tied to actual trades on the exchange.
• The move aims to strengthen India’s domestic gas market by offering risk management tools to stakeholders across the value chain.
• The contracts will provide a transparent mechanism for hedging price risks and offer financial institutions, brokers and investors exposure to the domestic natural gas derivatives market.
• NSE has received approval from the Securities and Exchange Board of India (SEBI) to launch Indian natural gas futures.
• Launch date to be announced later.