National Stock Exchange of India Limited (NSE) signs MoU with Steel Users Federation of India (SUFI) to develop steel derivatives market

Key facts

• National Stock Exchange of India Limited (NSE) has signed a Memorandum of Understanding (MoU) with the Steel Users Federation of India (SUFI) to collaborate on the development of the steel and relevant commodity derivatives ecosystem in India.
• The partnership aims to create a transparent and efficient price-risk management framework for Indian steel industry participants to hedge price volatility through exchange-traded derivatives.
• The initiative is expected to benefit stakeholders including steel manufacturers, processors, Micro, Small and Medium Enterprises (MSMEs), Original Equipment Manufacturers (OEMs), infrastructure companies, and end-users.
• Under the MoU, NSE and SUFI will collaborate on product design, market outreach, industry consultations, capacity building, and awareness initiatives.
• The proposed contract is intended to provide an effective hedging mechanism and support improved price discovery for domestic steel value chain participants.