New Delhi: The government has formally opened the door to exchange-based coal trading in India by notifying the Coal Exchange Rules 2026, creating a regulatory framework for the establishment and operation of coal exchanges, which aims to bring greater transparency, competition and market-based price discovery in the coal sector.The rules provide for the establishment of regulated electronic coal exchanges where buyers and sellers can trade coal through standardized contracts under the supervision of the Coal Controller’s Organization (CCO).The ministry had in December designated the CCO as the authority responsible for registration and regulation of coal exchanges. Qualified entities will be authorized to establish and operate coal exchanges, frame market rules and bye-laws and facilitate coal trading. Registrations will be granted for 25 years and can be renewed for another 25 years.The move marks a change in the coal market, which is dominated by long-term linkages, captive consumption and bilateral transactions. Exchanges will move marketing from a traditional “one-to-many” sales model to a competitive “many-to-many” trading platform, enabling market-driven price discovery.