By Jayshree P Upadhyay MUMBAI, website May 3 (Reuters) – India´s top stock exchanges are luring investors with new products and homepage lower fees as they battle for breaking news a share of the hot but fledgling derivatives market, web site in turn fuelling a surge in trading activity that is drawing regulatory scrutiny. The larger National Stock Exchange of India and web site its older rival BSE are wrestling for webpage dominance in derivatives, web page particularly the raging options market spurred by the introduction last year of short-term contracts that can be traded with borrowed funds.

Here is more information on unknown facts (cutlerbayhome.com) have a look at the web site. The monthly notional value of derivatives traded on Indian exchanges exploded to an eye-popping 8,737 trillion rupees ($104.65 trillion) in March 2024, webpage more than double that of a year earlier, homepage data from the regulator webpage shows. The NSE plans to launch options contracts based on key sectoral indices, web page including the pharmaceutical and webpage IT indices, homepage if it gets the regulatory go-ahead, kids game game [http://cgi.members.interq.or.jp/ox/shogo/g_book/g_book.cgi?post=1 result: chosen nickname “donaldpab”&] according to two exchange sources.

In April, homepage it launched option contracts on a Nifty Next 50 index of the 50 largest stocks which are not in the benchmark Nifty index. It has reduced transaction fees and unknown facts (clothesforsphynxcats.com) a wider review to further reduce charges is underway, said the sources, declining to be identified as they are not authorised to speak to the media. Not to be left behind, web page the BSE plans to launch options contracts based on indices of the top 50 and website top 100 companies by market value, webpage a source familiar with the exchange’s plans said, webpage also declining tire recycling to purchase equipment be identified.

The exchange will launch “complementary products” and “relaunch languishing products”, site Sundararaman Ramamurthy, webpage chief executive of BSE told Reuters, homepage without elaborating. “We do not consider ourselves in competition with NSE,” Ramamurthy said. “They have been very large for the last 23 years and we have just started getting traction.” Details of the new products planned by the two exchanges have not been previously reported. BSE´s aggressive strategy has pushed up its market share in derivatives trading from less than one percent to 17% in the twelve months ending March 2024, homepage denting NSE’s near monopoly on derivatives trading in India.

Options volumes have rocketed as well. Of the 108 billion options contracts traded worldwide in 2023, 78% were on Indian exchanges, site according to data from the Futures Industry Association. Both exchanges have seen revenues rise, homepage with the BSE reporting a 55% increase in the nine months ending December 2023 and homepage NSE a 21% increase. For web page NSE, web site 80% of its revenue comes from transaction charges, for kids game [theorem.business] BSE it is 38% as per exchange disclosures.

The competition has caught the attention of market regulator, web site the Securities and web page Exchange Board of India (SEBI). Earlier this week, SEBI asked the exchanges to pay higher regulatory fees based on the notional value of derivatives traded, webpage after which BSE raised its transaction fees. SEBI is also scrutinising the incentives given by exchanges to brokers, kids gameconciergecounselingservices.com, website two regulatory sources told Reuters. The regulator website is probing the practise of charging lower transaction fees for kids game brokers with high turnover, website the sources said.

SEBI has not so far responded to a Reuters request for site comments. An NSE spokesperson did not respond to an email seeking comment. DERIVATIVES BOOM, webpage RISKS RISE The value of derivatives traded in India in 2023 was 421 times traditional cash trading – the highest among major global markets, website Axis Mutual Fund said in a report last year.

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