NEW DELHI: The government has formally opened the door for exchange-based coal trading in India by notifying the Coal Exchange Rules 2026, laying down a regulatory framework for setting up and operating coal exchanges aimed at bringing greater transparency, competition and market-based price discovery to the coal sector.The rules provide for the establishment of regulated electronic coal exchanges where buyers and sellers can trade coal through standardised contracts under the supervision of the Coal Controller Organisation (CCO).The ministry had designated CCO in Dec as the authority responsible for registering and regulating coal exchanges. Eligible entities will be authorised to establish and operate coal exchanges, frame market rules and bye-laws, and facilitate coal trading.

Registrations will be granted for 25 years and may be renewed for a further 25 years.The move marks a shift in coal market, which is dominated by long-term linkages, captive consumption and bilateral transactions. The bourses will move marketing from traditional “one-to-many” sales model to a competitive “many-to-many” trading platform, enabling market-driven price discovery.