The Ministry of Coal on June 04, 2026 notified the Coal Exchange Rules, 2026 under Section 18B of the Mines and Minerals (Development and Regulation) Act, 1957. The rules establish a regulatory framework for setting up and operating Coal Exchanges in India, enabling buyers and sellers to transact coal and lignite through an online trading platform. The rules aim to ensure transparent, competitive, and efficient price discovery, improve market efficiency, and facilitate timely coal supply through standardized delivery-based contracts.
The Rules provide detailed definitions and governance provisions covering key concepts such as coal exchanges, members, clients, contracts, clearing, settlement, market manipulation, insider trading, cartelisation, circular trading, and audit trails. They prescribe eligibility criteria for establishing a Coal Exchange, including incorporation as a company under the Companies Act, 2013, and require exchanges to operate with robust governance, surveillance, transparency, and compliance mechanisms approved by the Coal Controller Organisation.
The framework also lays down the essential components of coal contracts, including bidding, price discovery, scheduling, delivery, quality verification through approved coal sampling agencies, payment settlement, and price adjustments based on coal quality. By creating a structured electronic marketplace with safeguards against market abuse and conflicts of interest, the Rules seek to enhance transparency in coal transactions, strengthen market confidence, and support efficient coal distribution across the country.
[Notification No. G.S.R. 442(E)]
