National Stock Exchange (NSE) chief Ashishkumar Chauhan believes the new regulatory proposals on F&O could have a significant impact on exchange volumes, if implemented in totality. Speaking at an analyst call on Thursday, Chauhan said the Gift City may become a beneficiary if volumes on the mainland bourses decline. “We are still waiting for the final framework to emerge,” he said.
To a question on which index will be selected for the weekly expiry, the NSE chief said the index would have to be a broad-based one, not thematic.
At a separate analyst call, BSE MD & CEO S Ramamurthy said that while regulatory changes could impact the existing paradigm, they also provide newer opportunities.
“BSE is at a nascent stage of development in this market segment and will find it comparatively easier to adapt and grow. The exchange has faced numerous headwinds in the past and we remain committed to provide a vibrant platform to our members,” said Ramamurthy.
He added that while the number of transactions and contracts traded may reduce, the higher premia may result in lower regulatory and clearing charges and higher revenues, given that revenues are based on premium.
“It will be presumptuous to say whether the new rules will be good or bad. We will have to wait and watch,” Ramamurthy said.
SEBI’s new proposals to rein in frenzy in equity derivatives may bring down volumes by 30-40 per cent, impacting exchanges and retail brokers the most.
The earnings impact may be higher for NSE with an estimated 25-30 per cent impact on its FY26 earnings and 15-18 per cent for BSE.
Colo push
Chauhan said there was no visibility on the exchange’s IPO. NSE had operationalised additional colocation racks this financial year and plans to set up at least 500 new colo racks by March 2025, he said.
The number of unique registered investors on NSE crossed the 10-crore mark on August 8, with the number of client codes (accounts) at 19 crore.
Investor base up
The investor base has more than trebled in the last five years, facilitated by rapid growth in digitisation, rising investor awareness, financial inclusion, and sustained market performance.
The investors have a median age of about 32 years, with 40 per cent of them being less than 30 years old. The median age was 38 years just five years ago. Nearly, over one in five investors today are females.
Currently, the highest number of unique registered investors are from Maharashtra (1.7 crore), followed by Uttar Pradesh with 1.1 crore investors and Gujarat with 87 lakh investors.