The
Coal Exchange Rules, 2026
Prelims:
Indian
Economy
Mains:
GS
Paper II-Government Policies and Interventions, GS Paper III-Energy
Current relevance:
The Ministry of
Coal notified the Coal Exchange
Rules, 2026 under Section 18B of
the Mines and Minerals (Development and
Regulation) Act, 1957, establishing a regulatory framework for transparent
and efficient trading of coal and lignite.
Highlights:
Objective:
The Rules establish a comprehensive
regulatory framework to promote transparent,
efficient and competitive trading of
coal, lignite and their processed forms.
Salient features:
1.
The Coal
Controller Organization (CCO) has been designated as the Authority to
register, regulate, renew and revoke Coal Exchanges, approve exit schemes, and
issue operational guidelines in consultation with the Central Government.
2. A Coal Exchange is an online platform where buyers and sellers
transact, trade and enter into contracts for coal and its processed forms.
3. Administrative Control: The
Authority will approve bidding and price discovery mechanisms, contract
specifications, delivery schedules, coal quality standards, transaction fee ceilings,
bye-laws and operating procedures.
4. Market Surveillance:
i.
The Authority will monitor the market to
prevent market manipulation, cartelization,
insider trading, abuse of dominant position.
ii.
It is empowered to conduct inspections, issue interim orders and intervene in cases of non-compliance.
5. Settlement Guarantee Fund (SGF):
i.
Every Coal Exchange will maintain a Settlement Guarantee Fund (SGF) managed
by an independent committee.
ii.
At least 50% of the fund must be invested in safe and liquid instruments, including fixed deposits with
Scheduled Public Sector Banks, treasury Bills, government Securities.
6. Market Surveillance Mechanism:
Coal
Exchanges will establish a market
Surveillance Committee, surveillance
Department, automated audit trails,
IT security audits, disaster
recovery sites, alternate trading facilities for business continuity.
7. Every
Coal Exchange will have a Grievance
Redressal Forum, and the Authority may seek information on grievance
resolution.
Source: PIB- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2291193®=48&lang=1