India’s first domestic benchmark-based natural gas futures contract will launch on 27 July 2026 on the National Stock Exchange under the ticker NATGASIND, after approval from the Securities and Exchange Board of India (SEBI).
Contract Features
- Ticker & Launch Date: NATGASIND, launch 27 July 2026.
- Underlying Benchmark: Indian Gas Exchange (IGX) Gujarat (Dahej) hub price.
- Quotation: Indian Rupees per mmBtu.
- Contract Type: Cash-settled exchange-traded futures; no physical delivery at expiry.
Contract Design & Settlement
- Trading Unit: 250 mmBtu per contract.
- Final Settlement Price: Monthly weighted average price of gas delivered at the IGX hub during the contract period.
- Exclusions: Trades executed at government-mandated ceiling prices excluded from settlement calculation.
Clearing, Margins & Operations
- Clearing Agency: NSE Clearing to handle clearing and settlement.
- Risk Measures: Daily mark-to-market adjustments and initial margin collection applied.
Market Use
- Participants: Producers, consumers, traders and financial intermediaries in the domestic gas market.
- Purpose: Provides an exchange-traded price reference linked to a local benchmark.
IASPOINT Booster Facts
- SEBI: Regulates securities markets and approves exchange-traded derivative products in India.
- IGX: Indian Gas Exchange operates regional hubs including Gujarat (Dahej) that produce price benchmarks.
- mmBtu: Stands for million British thermal units, a standard energy unit in gas markets.
- Cash Settlement: Contract closed by cash payment based on reference price rather than physical delivery.