NSE Receives SEBI Approval To Launch Indian Natural Gas Monthly Futures Contracts

The National Stock Exchange of India, on February 16, 2026, said it has received approval from the Securities and Exchange Board of India to launch Indian Natural Gas futures contracts.

In a statement issued on February 16, the Mumbai-headquartered exchange confirmed that the proposed NSE Indian Natural Gas futures will be structured as monthly contracts. It stated that at any given time, 12 monthly contracts will be available for trading.

The exchange added that further details regarding the contract design and launch timelines will be announced in due course.

Collaboration With Indian Gas Exchange

On January 8, 2026, NSE said it would work with the Indian Gas Exchange to create and set up Indian Natural Gas futures. According to NSE’s earlier statement dated January 8, the initiative aims to combine NSE’s derivatives market infrastructure with IGX’s spot trading mechanism for natural gas.

NSE said that the proposed futures contract is meant to fit with India's changing natural gas pricing system and give buyers and sellers a way to find out what the price is. 

Contract Structure And Market Framework

As per NSE’s February 16 statement, the introduction of Indian Natural Gas futures is designed to create a structured derivatives product linked to domestic natural gas markets. The exchange specified that the contracts will be available in a rolling monthly format, with 12 active monthly contracts at any point in time.

The exchange said the product is aimed at offering a transparent and efficient risk management tool within the regulated derivatives framework overseen by Sebi.

Intended Market Participants

In its statement, NSE said the introduction of natural gas futures is expected to support gas producers, city gas distributors, power generators, fertiliser manufacturers, industrial consumers, traders, and financial market participants. The exchange stated that the contract is structured to facilitate hedging against price volatility and assist in planning and risk management.

Sebi gave NSE the go-ahead on February 16, 2026, to start the process of adding Indian Natural Gas monthly futures contracts to its commodity derivatives offerings.